Strategy Inc Stock Hits 52-Week Low at $87 After Weekly 25% Slide
MSTR•Strategy Inc’s common stock fell over 9% to $87 on June 26, marking a seven-day slide and weekly loss near 25% after breaching the $100 level. The company holds $2.21 billion in cash—enough to fund preferred dividends for ten months—yet faces a class-action probe and calls to pause Bitcoin buys.
1. Stock Plunge and Support Breach
Strategy Inc’s common shares plunged over 9% on June 26 to $87, extending a seven-day decline that resulted in a nearly 25% weekly loss. The drop pushed the stock below its $100 support level for the first time since late 2022, reflecting mounting investor concern over its leveraged Bitcoin accumulation strategy and amplified volatility.
2. Cash Reserves and Dividend Obligations
The firm reported $2.21 billion in cash reserves, which it says will cover preferred stock dividend commitments for the next ten months. Preferred shares have fallen to $77, down 23% in June, after a May sale of 32 BTC to fund dividend payments shook confidence in the sustainability of its high-yield preferred securities.
3. Legal Probe and Analyst Warnings
A class-action investigation has been launched into whether Strategy’s executives misled investors on its Bitcoin treasury model and profitability outlook. Additionally, CryptoQuant has urged the company to pause further Bitcoin purchases and rebuild its U.S. dollar cash buffer to shore up funding for its aggressive accumulation program.
