Key Takeaways
- MSTR shares tumbled approximately 6% to roughly $109 following STRC preferred stock hitting an all-time low of $89
- With STRC trading beneath its $100 par value, Strategy has suspended issuing new shares for bitcoin acquisitions
- The company liquidated 32 bitcoin in May — marking its first cryptocurrency sale since 2022 — to cover STRC dividend obligations
- Board member Jarrod Patten offloaded approximately $9M in MSTR shares across a three-month period; additional executives sold earlier this year
- Wall Street firms including Bernstein, TD Cowen, Citigroup, and BTIG maintained optimistic outlooks with price targets ranging from $250–$450
Strategy (MSTR) shares experienced a sharp decline of approximately 6% on Thursday, settling around $109, as the company confronted simultaneous challenges — deteriorating preferred share valuations, executive stock sales, and a subdued cryptocurrency market following the Federal Reserve’s most recent policy decision.
The primary catalyst was the performance of STRC, Strategy’s Stretch preferred shares, which plummeted to an unprecedented low of $89. This development carries significant implications because STRC now trades beneath its $100 par value, compelling Strategy to suspend its at-the-market offering program — the primary vehicle through which it generates capital for bitcoin purchases.
With this fundraising avenue currently closed, Strategy’s flagship bitcoin accumulation model has effectively ground to a halt.
Company Breaks Bitcoin No-Sell Policy
During late May, Strategy liquidated 32 bitcoin units for approximately $2.5 million to satisfy STRC dividend requirements. This transaction represented the company’s first bitcoin sale since initiating its accumulation strategy in 2022.
Executive Chairman Michael Saylor had consistently championed a hold-forever philosophy regarding bitcoin holdings. This sale marked a significant shift from that established position, though analysts from Benchmark and TD Cowen dismissed concerns about any systemic breakdown.
Compounding competitive dynamics, Strive’s competing SATA preferred instrument trades above $99 with a 13.69% yield, attracting income-seeking investors toward an alternative vehicle.
According to market maker QCP’s analysis, Strategy possesses approximately 7.5 months of remaining liquidity to fulfill preferred dividend commitments. QCP highlighted that the company may ultimately confront decisions involving additional capital raises with shareholder dilution or further bitcoin liquidations.
Strategy recently bought back nearly $1.5 billion worth of convertible bonds maturing in 2029 while simultaneously raising roughly $200 million through MSTR equity offerings — partially deployed to acquire another $100 million in bitcoin.
Executive Stock Sales Compound Concerns
Board Director Jarrod Patten executed options on 1,500 Class A shares at an exercise price of $18.236 and disposed of them at approximately $134 per share, netting around $200K. Throughout the previous three months, Patten has liquidated 55,750 MSTR shares for combined proceeds nearing $9 million.
His remaining holdings include 28,406 Class A shares and 44,250 unexercised director stock options.
Earlier in 2026, Chief Executive Phong Le, Chief Financial Officer Andrew Kang, and former Executive Vice President Wei-Ming Shao also executed substantial MSTR stock sales.
The Federal Reserve delivered a unanimous 12-0 vote on June 17 to maintain interest rates at 3.50%–3.75%, though the updated dot plot revealed nine of 18 FOMC participants now anticipate at least one rate increase before 2026 concludes. This hawkish shift pressured bitcoin and cryptocurrency-related equities despite strength in broader market indices.
Bitcoin was changing hands near $63,850 at publication time, declining roughly 2% over the preceding 24 hours. At current pricing, Strategy’s holdings reflect an unrealized loss of approximately $11,658 per coin relative to its average purchase cost.
MSTR concluded Wednesday’s session down 5.09% at $116.56, then extended losses another 2.1% to $114.04 during Thursday’s morning session. The equity has now declined approximately 31% across the past month.
Notwithstanding these headwinds, Bernstein reaffirmed its buy recommendation alongside a $450 price objective. TD Cowen maintains coverage at $350, Citigroup at $260, and BTIG at $250.
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