Strategy Inc. Stock Hits 52-Week Low at $86.34 as Cash Reserves Shrink
MSTR•Strategy Inc. stock plunged to a 52-week low of $86.34 after sliding more than 9% Thursday and nearly 25% on the week as investors questioned its leveraged Bitcoin model and shrinking cash buffers. The company holds $2.21 billion in cash to fund preferred stock dividends for about 10 months and now faces a class-action probe plus recommendations to pause Bitcoin acquisitions.
1. Stock Plunge to 52-Week Low
Strategy Inc. common shares fell to $86.34, down over 9% intraday and nearly 25% on the week, marking a one-year low as investors reassess the firm’s leveraged Bitcoin exposure and potential margin pressures.
2. Cash Position and Dividend Funding
The company holds $2.21 billion in U.S. dollar reserves, sufficient to cover preferred stock dividends for approximately 10 months, but a recent sale of 32 BTC to fund payouts and the preferred shares trading near $77 reflect tightening cash buffers.
3. Class-Action Probe Launch
A legal investigation has been opened into Strategy Inc. over potential misleading statements concerning its Bitcoin treasury strategy, profitability and risk disclosures, targeting both common and preferred securities issued by the company.
4. Calls to Pause Bitcoin Accumulation
Analysts at CryptoQuant recommend halting further Bitcoin purchases and rebuilding cash reserves to strengthen the dividend funding model, warning that continued systematic buys without a larger dollar buffer could amplify funding strain.
