MicroStrategy’s ‘Stretch’ Preferred Hits $83 Intraday Low as Bitcoin Dips
MSTR•MicroStrategy’s ‘Stretch’ preferred stock fell to an all-time intraday low of $83, closing at $88.59, below its $90 par value. Bitcoin slid from $65,000 to about $63,000 after the Fed signaled at least 25bp of rate hikes later this year, pressuring crypto equities.
1. Bitcoin Weekly Decline
Bitcoin fell from $65,000 to around $63,000 over the week after the Federal Reserve indicated it expects at least a 25 basis point rate hike in the second half of the year, stalling the cryptocurrency’s tentative recovery.
2. MicroStrategy Stretch Preferred Slide
MicroStrategy’s “Stretch” preferred stock, designed to maintain a $100 stable price and high dividend, dropped below its $90 par value for the first time, hitting an intraday low of $83 on June 18 and closing at $88.59.
3. Market Outlook and Crypto Sentiment
Options traders are betting Bitcoin could slide to $52,000 by the end of July, while analysts remain divided on whether the recent sub-$60,000 low represents a sustainable bottom or if further downside catalysts will emerge.
