Key Takeaways
- The company controls 847,363 BTC valued at approximately $50.8 billion, but faces roughly $13 billion in unrealized losses with an average purchase price of ~$75,646 per coin.
- Chairman Michael Saylor shared his typical X post suggesting an imminent bitcoin acquisition, potentially as soon as Monday’s regulatory filing.
- MSTR shares plummeted to approximately $82, marking the weakest level since February 2024, while preferred shares STRC reached an all-time low around $71.
- For the first time, Strategy’s enterprise mNAV dropped under 1, indicating the market assigns less value to the firm than its bitcoin reserves.
- Industry figures including Ripple’s Brad Garlinghouse and blockchain analytics provider CryptoQuant have questioned Strategy’s capital raising approach, with calls to suspend purchases.
Strategy (MSTR) shares have plunged to their weakest point since February 2024, hovering around $82 following an approximately 8% decline last Thursday. The company’s preferred equity instrument, STRC, similarly touched an unprecedented low near $71 during the previous week.
Despite the sell-off, Michael Saylor remains undeterred.
Early Sunday, the executive chairman of Strategy shared the firm’s bitcoin purchase tracking visualization on X, accompanied by his characteristic message: “We’re gonna need more charts.” This pattern preceded verified acquisitions on both June 7 and June 21. Market observers anticipate a potential Monday Form 8-K submission.
The company’s bitcoin treasury consists of 847,363 BTC acquired at a mean price point of approximately $75,646 per token. With current bitcoin prices hovering under $60,000, the holdings carry an unrealized deficit of roughly $13 billion. According to estimates from The Block, this paper loss could reach as high as $14 billion amid continued market weakness.
Strategy’s latest acquisition represented its most modest purchase in several weeks. A June 22 disclosure revealed the addition of 520 BTC for approximately $35 million, while simultaneously increasing its cash reserves by $300 million to reach $1.4 billion total. Saylor has indicated the firm maintains approximately 10 months’ worth of reserves to satisfy STRC dividend commitments.
Capital Structure Concerns Mount
The dual pressure from declining equity prices and a heavily discounted preferred instrument has driven Strategy’s enterprise mNAV metric below 1 for the first time in company history. This measurement compares total enterprise valuationāencompassing both debt obligations and preferred securitiesāagainst bitcoin holdings. When this ratio falls beneath 1, the firm’s ability to raise additional capital through equity issuance becomes significantly impaired.
STRC features an 11.5% annual yield and was structured to maintain trading near its $100 stated value. Current pricing sits around $74.57.
According to analysis from Block Research, MSTR common shareholders effectively hold a subordinated position behind approximately $6.7 billion in convertible notes and roughly $15.5 billion in perpetual preferred instruments, transforming the common stock into a highly leveraged residual interest rather than a straightforward bitcoin investment vehicle.
Strategy executed its first bitcoin disposition since 2022 on June 1, liquidating 32 coins for roughly $2.5 million to fund a STRC dividend distribution, before resuming its regular acquisition schedule.
Industry Criticism Intensifies
Ripple’s CEO Brad Garlinghouse criticized Strategy’s approach during a Friday CNBC interview, stating Saylor’s leadership “wasn’t focused on the right stuff” and suggesting the company’s tactics have negatively impacted broader cryptocurrency markets. He referenced STRC’s trading discount as proof of structural vulnerabilities.
Blockchain analytics platform CryptoQuant issued stronger warnings on June 23, recommending Strategy immediately halt acquisitions and prioritize cash position strengthening. Research director Julio Moreno noted annual dividend obligations have quadrupled to approximately $1.2 billion, while STRC coverage capacity has contracted from over seven years to roughly 14 months. CryptoQuant calculated that Strategy requires around $2.8 billion in reserves to reestablish two years of adequate coverage.
Bitcoin traded beneath $60,000 on Sunday, approaching its lowest valuation since October 2024.
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