Strategy Inc.’s MSTR and STRC suffered another brutal drawdown in the latest trading session, plunging into fresh multi-year lows as Bitcoin’s weakness triggered accelerated selling across the company’s leveraged Bitcoin treasury structure.
As of the close on June 24, 2026, Strategy Inc.’s common stock (MSTR) finished at $94.13, down $9.71 or 9.35% on heavy volume. The stock traded in a wide intraday range of roughly $92.28 to $102.97 and sits near its recent lows, well below the 52-week high above $450.
STRC, Strategy’s Variable Rate Series A Perpetual Stretch Preferred Stock, closed at $80.84, down $6.47 or 7.41%. It has broken decisively below its $100 par value target and is hovering near 52-week lows around $79.85.
These moves occurred against a backdrop of Bitcoin trading in the low-to-mid $60,000s (recent closes near $61,000), down nearly 52% from 2025 peaks.
Adding to the current mounting pressure on Strategy Inc., Rosen Law Firm announced on June 24, 2026, that it is investigating potential securities claims against the company (and its various securities including MSTR and STRC). The probe centers on allegations that Strategy “may have issued materially misleading business information to the investing public.”
While such investigation notices are common early-stage tactics by plaintiff firms and do not always lead to formal lawsuits, the development comes at a sensitive time amid the sharp drawdown in MSTR and STRC, heightened scrutiny of the company’s Bitcoin treasury strategy, dividend sustainability, and capital-raising practices. This legal overhang could further weigh on investor sentiment in the near term, even as analysts debate tactical adjustments to preserve Michael Saylor’s leveraged Bitcoin accumulation model.
The drawdowns reflect amplified downside
Strategy transformed into a Bitcoin (BTC) treasury company under Executive Chairman Michael Saylor. The playbook is straightforward but highly cyclical: raise capital through common equity (MSTR) and a suite of preferred instruments, then deploy proceeds primarily into Bitcoin to grow BTC per share over time.
MSTR typically moves 2–3x (or more) Bitcoin’s percentage changes due to its leveraged structure, while STRC has lost its intended price stability as the variable dividend mechanism struggles to keep it near par amid selling pressure and higher required yields.
STRC, launched in mid-2025, was designed as a more income-oriented vehicle. It features a variable dividend rate (currently around 11.5%, with effective yields higher due to the price discount) that adjusts monthly in 0.25% increments to encourage trading near the $100 par value. The idea was to create a “stretch” preferred that offers high yield with reduced price volatility compared to common stock, allowing Strategy to tap income-focused capital efficiently for more Bitcoin purchases.
In rising or stable Bitcoin markets, this loop works powerfully: new capital buys BTC → BTC price rises or holdings grow → MSTR trades at a premium to NAV → more efficient raises → continued accumulation. STRC stays near par, dividends remain manageable, and Bitcoin per share compounds.
The current freefall stems from the reverse dynamic in a Bitcoin downturn. BTC’s decline (from higher 2025 levels into the $60k zone) created large unrealized losses on the treasury. MSTR, as the leveraged equity vehicle, amplified those losses. Fears of ongoing dilution to fund preferred dividends and new purchases pressured the common stock lower.
As MSTR weakened and traded closer to (or below) certain NAV multiples, raising new capital became more dilutive. This led STRC, meant to trade stably near $100, slipping below par too. This strained perceived cash coverage and fueled further selling or caution among investors.
Additionally, broader factors, including general crypto market weakness, macro uncertainty, profit-taking after prior runs, amplified the move and increased scrutiny on the sustainability of Strategy’s capital structure during prolonged drawdowns.
Even amid the weakness, the company has continued selective Bitcoin purchases even, though some reports note efforts to manage cash reserves more carefully. The result is a classic leveraged unwind: asset price drop → funding costs rise → balance sheet optics worsen → further price pressure.
Strategy holds approximately 847,363 BTC, giving it one of the largest corporate Bitcoin treasuries globally.
Here’s What Analysts Suggest
Market observers and on-chain analysts have outlined several tactical adjustments to stabilize the situation without abandoning the core Bitcoin strategy.
One prominent recommendation comes from on-chain analytics firm CryptoQuant, which urged Strategy to pause aggressive Bitcoin buying temporarily, rebuild cash reserves, and adopt more disciplined, systematic purchasing rather than buying whenever capital is raised. They highlighted thinning cash coverage for dividends and the risks of accumulating at cycle tops.
On the preferred side, Strategy has already taken steps such as moving STRC to semi-monthly dividend payments (approved by shareholders) to reduce volatility around record dates and potentially improve demand. Further dividend rate increases or clearer communication around yield adjustments could help attract yield buyers back toward par.
Some market participants on Reddit discussed the possibility of open-market buybacks of STRC shares when trading at meaningful discounts to par. This would be accretive (buying back cheaper than issued) and could help stabilize the price, though it would divert capital from Bitcoin accumulation.
A more bullish defense of the current structure appears in a recent X post by Bitcoin analyst Adam Livingston. He suggests that Strategy’s dividend obligations on instruments like STRC can be comfortably serviced without ever touching the company’s USD cash reserves or selling any Bitcoin. Instead, the company could simply issue new MSTR shares at a modest rate of just 0.5% dilution per month, which annualizes to roughly 6% dilution per year. This level of share issuance, he argues, is relatively low and sustainable in the context of the overall strategy.
“MSTR shareholders know they are getting 44% amplified Bitcoin in exchange for servicing the dividends. The math isn’t hard. Strategy is fine,” Adam emphasized.
The post sparked debate about dilution math, leverage benefits on the upside, and comparisons to leveraged ETFs, with supporters arguing the amplification justifies the cost for long-term holders.
Other suggestions include issuing new capital only opportunistically when MSTR trades at a sufficient premium to NAV (e.g., above 1.2x) and continuing to emphasize BTC per share growth as the primary performance metric rather than short-term stock price.
Outlook: What’s Coming?
The near-term path remains volatile and dependent on Bitcoin’s direction. A sustained recovery in BTC toward $70,000–$80,000+ (as seen in various 2026 forecasts) could quickly reverse sentiment, allow STRC to trade back toward par, reduce required dividend rates, and restore MSTR’s premium to NAV. Strategy’s massive Bitcoin holdings would then deliver substantial unrealized gains and support further per-share growth.
Longer-term bulls argue the model remains intact: non-dilutive long-term capital (preferreds with no maturity) funding a compounding Bitcoin asset creates powerful asymmetry. Even with moderate ongoing dilution, the amplified exposure can outperform spot Bitcoin over multi-year cycles for patient holders, provided the company maintains discipline.
However, a prolonged Bitcoin bear market could further drive risk that forces heavier dilution or, in extreme scenarios, questions around dividend sustainability. Increased competition from other Bitcoin treasury vehicles or preferred structures could also pressure STRC demand.
Strategy is currently a hot topic among crypto investors. Its short-term pain from the current drawdown is real and painful for holders, but the underlying thesis hinges on Bitcoin eventually rewarding the accumulation.
Also read: Veteran Chinese Miner Predicts Bitcoin Bottom at $42K–$44K in Late 2026
