Strategy shares plunged 25% over seven days to a 52-week low, with mNAV trading at 0.70 and common stock down over 9% in a session. Cash reserves of $2.21bn cover preferred dividends for ten months while a Rosen probe and CryptoQuant’s pause-buy warning raise funding risks.
Strategy’s common stock plunged over 25% across seven trading days, reaching a 52-week low of $86.34 on June 25 after falling more than 9% in a single session, marking its worst seven-day stretch since November 2022 as investors reassess its leveraged Bitcoin model.
The company holds $2.21 billion in cash reserves, enough to cover its high-yield preferred stock dividend for ten months; it sold 32 BTC at the end of May to help fund dividend payments as STRC traded down to $77 from its $100 par value.
Rosen Law Firm opened an investigation into whether the company and certain executives made materially misleading statements about business operations, profitability and the risks tied to its aggressive Bitcoin treasury strategy, covering multiple classes of its common and preferred securities.
CryptoQuant advised pausing further Bitcoin purchases and rebuilding U.S. dollar reserves, warning that the cash buffer supporting dividend commitments has weakened; the firm noted mNAV has slipped to 0.70, underscoring valuation and funding model vulnerabilities.
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