Saylor Defends Bitcoin Strategy as MSTR and STRC Crash to 52-Week Lows
Michael Saylor broke his silence on Friday, posting a message on X as Strategy's stock and preferred shares continued their painful descent to record yearly lows. The statement came at a particularly turbulent moment for the company, with both MSTR shares and STRC — Strategy's variable-rate perpetual preferred instrument — touching 52-week lows simultaneously.
"Volatility tests every capital structure," Saylor wrote. "Strategy remains focused on Bitcoin, disciplined capital allocation, credit quality, and long-term value creation. We appreciate our investors and will continue to execute with transparency and resolve. $MSTR."
The timing of the post was significant. MSTR has now lost more than 80% from its all-time high, while STRC — which carries a par value of $100 — was trading near $74, representing a steep 26% discount to par. This distinction matters greatly: when preferred shares fall below their par value, the company's ability to raise fresh capital through preferred issuance becomes severely impaired, as institutions are unlikely to subscribe to new instruments priced above what the existing ones trade at in the open market.
Adding further pressure, Bitcoin dropped to $58,000 on Wednesday — its lowest point since October 2024 — pushing Strategy's unrealized losses past $14 billion. The firm currently holds 847,363 BTC, acquired at an average price of $75,680 per coin, leaving it more than $17,000 underwater per coin at current market levels.
MSTR shares had already shed roughly 25% over five consecutive trading sessions heading into Friday, with pre-market activity extending those losses modestly. The stock's mNAV has fallen below 1.0, meaning the market is now valuing Strategy at a discount to the bitcoin it holds on its balance sheet. This is a critical problem for the company's core operating model, which relies on issuing equity or preferred instruments at a premium to NAV and deploying those proceeds into Bitcoin — thereby growing NAV per share. Without the premium, neither the equity channel nor the preferred channel can function effectively.
The financial strain is not limited to Bitcoin's price decline. Strategy's annual dividend obligations across its preferred share classes — STRC, STRK, STRF, STRD, and STRE — have surged from $300 million at the beginning of 2026 to $1.2 billion, a fourfold increase in just six months. Cash reserves have dropped 38% over the same period. Dividend coverage, which once extended beyond seven years, has now compressed to approximately 14 months.
A Bloomberg report published Thursday noted that investor scrutiny of Saylor's capital-raising model has reached its most intense level to date. Separately, analytics firm CryptoQuant released a note calling on Strategy to pause Bitcoin acquisitions entirely and rebuild cash reserves to $2.8 billion before resuming purchases.
In early June, Strategy executed its first Bitcoin sale in four years, liquidating 32 BTC at an average price of $77,135 per coin. Saylor characterized the move as a demonstration that the company could meet dividend obligations through asset sales if needed. Markets appeared unconvinced.
The prior week, Strategy purchased only 520 Bitcoin — a fraction of its historical buying pace — and directed $300 million of a $335.5 million equity raise into cash rather than Bitcoin. Saylor offered no additional commentary beyond his Friday post on X.