Strategy’s STRC Shares Slump 25% to $71 on $13B Bitcoin Loss
MSTR•Strategy holds a $13B unrealized bitcoin loss and saw its STRC preferred shares slump 25% to a record low near $71, breaching the $100 par value. Its $2.25B cash reserve funds dividends for ten months as Bitcoin trades near two-year lows around $60,000 with $4.6B ETF outflows.
1. Bitcoin Market Downturn
Bitcoin has fallen more than 30% year-to-date to around $60,000, its lowest level in two years, while Ethereum is down nearly 50% at $1,580. Heavy net outflows totaling $4.6B from U.S. spot Bitcoin ETFs have intensified selling pressure on digital assets.
2. $13B Unrealized Loss and STRC Decline
Strategy is carrying a $13 billion unrealized loss on its bitcoin holdings, pushing its STRC preferred shares down about 25% this month to a record low near $71 and breaching their $100 par value. The preferred stock’s slide has raised concerns over the firm’s capital structure under sustained volatility.
3. Dividend Funding and Management Response
The firm holds roughly $2.25 billion in cash reserves, expected to cover preferred dividends for the next ten months, even as recurring costs mount. Executive Chairman Michael Saylor has acknowledged that volatility tests every capital structure while pledging disciplined allocation and long-term value creation.
