MicroStrategy Shares Fall 9.35% to $94.13, Hit 52-Week Low
MSTR•MicroStrategy common shares plunged 9.35% to $94.13, touching an intraday 52-week low of $92.28, while its STRC preferred shares dropped 7.41% to $80.84, below par. Monday’s $300 million cash raise failed to prevent new lows despite covering roughly ten months of debt, intensifying market concerns over Saylor’s funding model.
1. Stock Price Plunge
MicroStrategy common stock tumbled 9.35% to close at $94.13, reaching an intraday low of $92.28—a 52-week trough starkly down from its $457.22 peak.
2. Preferred Shares and Cash Raise
STRC preferred shares declined 7.41% to $80.84, trading below their $100 par value despite the company’s $300 million cash raise on Monday intended to bolster debt coverage.
3. Bitcoin Price Slide
Bitcoin dipped as low as $59,200 during the selloff, exacerbating downward pressure on MicroStrategy’s Bitcoin-backed model, before recovering to around $61,000 post-market.
4. Debt Coverage Concerns
The fresh cash secured covers approximately ten months of debt obligations, but investors remain wary of a potential funding shortfall and the so-called ‘doom loop’ if share prices fall further.
