Bitcoin is trading near a two week low, and the pressure is rippling outward. Strategy (MSTR), the company that built its identity around holding Bitcoin at almost any cost, has watched its common shares slip below $100 for the first time since early March 2024, a drop that raises pointed questions about how long the treasury model can hold together.
At a Glance
- BTC/USD recently traded near $62,658, down about 2% on the day and at its weakest in two weeks.
- MSTR shares fell as low as $97.30 Wednesday, off roughly 5.5% on the session.
- Strategy common stock is down about 20% over the past week and more than 38% over the past month.
- Preferred shares STRC, designed to trade near $100, touched $82.53 last week and were changing hands near $84.35 Wednesday, down 3.4%.
- The last time MSTR traded under $100 was March 1, 2024, when Bitcoin was also in the $61,000 to $62,000 range.
| Price | 62658.4 |
|---|---|
| Day change | -1292.21 (-2.02%) |
| Volume | 12,417 |
How Bitcoin Got Here
Bitcoin set a record above $126,000 last October, a peak fueled in part by optimism around President Donald Trump's crypto friendly posture and a wave of institutional buying. Since then, the asset has shed more than 50% of its value. The recent slide below $63,000 reflects a broader shift in investor appetite: money has been rotating out of Bitcoin ETFs and toward AI stocks, while the Federal Reserve's more cautious tone on rate cuts has weighed on speculative assets across the board.
Bitcoin has struggled to reclaim the $70,000 level since falling through it around early June. That timing matters because it coincides with Strategy disclosing its first Bitcoin sale since 2022, a move that cracked the "buy and never sell" narrative that executive chairman Michael Saylor had built his public persona around for years. Whether the sale was a pragmatic cash management decision or a sign of something more fragile is a question the market has been wrestling with since.
Strategy Under the Microscope
Strategy holds roughly $52 billion worth of Bitcoin, making it the largest corporate holder of the asset by a wide margin. The company pioneered the crypto treasury model, and its influence on Bitcoin's price during bull markets has been real: aggressive BTC purchases provided a visible demand floor that other companies later copied. The flip side of that visibility is that Strategy's own stumbles now attract outsized scrutiny.
MSTR shares peaked above $400 in early 2025, roughly four times where they sit today. The collapse from those levels is partly a Bitcoin story, but the company's own capital structure adds a separate layer of risk. Strategy has issued preferred shares, including STRC, to fund Bitcoin purchases. STRC carries dividend obligations, and investors have grown concerned that a prolonged Bitcoin downturn could force the company to sell BTC holdings to meet those payments. That fear is not purely theoretical: the company already sold Bitcoin once this year, breaking a long held promise.
STRC was engineered to trade near $100, but it fell to $82.53 last week and has not recovered. A preferred share trading nearly 18% below its intended price sends a clear signal about how bond and equity markets are pricing the risk around Strategy's balance sheet. Preferred shareholders rank ahead of common stockholders in a liquidation, so the pressure on STRC hints at concerns that go well beyond a routine dip in Bitcoin sentiment.
The Macro Headwinds Are Real
Bitcoin is not falling in isolation. Outflows from spot Bitcoin ETFs have picked up as investors chase faster moving opportunities in AI related equities. The Fed's more hawkish posture, signaling fewer rate cuts than markets had hoped for, has broadly dimmed enthusiasm for assets that don't generate cash flows. Bitcoin produces no dividends and no earnings, which makes it a harder hold when the opportunity cost of owning it rises.
Strategy's structure amplifies all of that. A company that finances Bitcoin purchases through equity and preferred share issuance is, in effect, applying leverage to an already volatile asset. When Bitcoin rallies, the model looks prescient. When it falls 50% from an all time high, the math works in reverse, and the questions about solvency and dividend coverage get louder, not quieter.
Frequently Asked Questions
Why did MSTR shares fall below $100?
Strategy shares dropped below $100 on Wednesday as Bitcoin slid to a two week low near $62,658. The stock has fallen about 20% in a week and more than 38% over the past month, reflecting both the Bitcoin price decline and investor concern about Strategy's preferred share obligations and its recent decision to sell Bitcoin for the first time since 2022.
What is STRC and why does it matter?
STRC is a class of Strategy preferred shares issued to raise capital for Bitcoin purchases. It was designed to trade near $100, but fell to $82.53 last week and sat near $84.35 Wednesday. Its discount to face value reflects market concern that falling Bitcoin prices could make it harder for Strategy to cover dividend payments without selling more BTC.
Is Bitcoin in a bear market?
Bitcoin has fallen more than 50% from its all time high above $126,000 set last October, which meets the conventional definition of a bear market. Crypto assets are notoriously volatile, and past drawdowns of similar magnitude have been followed by recoveries, but there is no guarantee of timing or extent in either direction.
What drove Bitcoin to its all time high last year?
The October 2024 peak above $126,000 was driven by a combination of institutional buying through spot ETFs, optimism around a more crypto friendly regulatory environment following the U.S. election, and aggressive corporate accumulation by firms like Strategy. Many of those tailwinds have since faded or reversed.
Where Things Stand
Bitcoin near $62,658 is not catastrophically low by historical standards, but the context around this particular level is uncomfortable. The last time both BTC and MSTR were trading where they are now was March 2024, before either had run up to their respective peaks. The difference today is that Strategy carries far more complex liabilities, a preferred share structure with real dividend obligations, and a community of investors who bought in at prices well above current levels. That is a harder position to talk your way out of than a simple price chart would suggest.