MSTR Shares Tumble Nearly 10% Amid Securities Probe and Bitcoin Slide Below $60K
Strategy Inc. (MSTR) is facing one of its most turbulent stretches in recent memory, with shares dropping more than 9% on Thursday to levels not seen since March 2024. The selloff extended a five-day losing streak that has now erased close to 30% of the stock's value, as Bitcoin simultaneously broke below the $60,000 threshold and a securities investigation targeting the firm became public knowledge.
By midday Thursday, MSTR shares had fallen to approximately $85, compared to a price above $117 at the beginning of the week. Zooming out to a one-month window, the stock has shed around 36% of its value — nearly double the 18.5% decline recorded by Bitcoin over the same timeframe. The divergence highlights how the company's leveraged exposure to the cryptocurrency has amplified losses beyond what the underlying asset alone would suggest.
Adding legal complexity to the market pressure, Rosen Law Firm publicly announced it is investigating potential securities fraud claims against Strategy. The firm alleges that Strategy "may have issued materially misleading business information to the investing public." The investigation spans all five of Strategy's publicly traded securities: MSTR, STRF, STRC, STRK, and STRD. Michael Saylor, the company's well-known figurehead, has made no public statement regarding the probe.
The situation is further complicated by structural vulnerabilities within Strategy's capital framework. The company currently holds 847,363 Bitcoin — the largest corporate Bitcoin reserve on the planet — but the average purchase price now leaves the entire 2024, 2025, and 2026 acquisition tranches underwater. Unrealized losses on the Bitcoin portfolio have reached an estimated $10.6 billion.
Perhaps most alarming for investors is the collapse of Strategy's STRC preferred stock, which has plummeted to an all-time low and now trades around $76 — approximately 24% below its $100 par value. This matters because Strategy has historically used preferred stock issuance as a mechanism to fund continued Bitcoin accumulation. When preferred shares trade below par, that fundraising channel effectively shuts down.
As Strategy expanded its STRC issuance over the past six months, annual dividend obligations skyrocketed from $300 million at the start of 2026 to $1.2 billion — a fourfold surge. Meanwhile, the company's cash reserves declined by 38% over the same period, raising serious questions about its ability to sustain dividend payments.
On-chain analytics firm CryptoQuant published a note on June 23 urging Strategy to halt further Bitcoin purchases and rebuild its cash position to approximately $2.8 billion before resuming accumulation. The firm noted that dividend coverage has collapsed from over seven years to just around 14 months.
It appears Strategy may have already begun responding to these pressures before the CryptoQuant report was released. During the week of June 22, the company purchased only 520 Bitcoin for roughly $35 million — a dramatically reduced pace compared to prior buying activity. Additionally, Strategy directed $300 million out of a $335.5 million common stock raise directly into its cash reserve, bringing the total to $1.4 billion.
Whether these measures will be sufficient to stabilize the company's financial position — and satisfy both investors and regulators — remains to be seen as scrutiny intensifies from multiple directions.