MicroStrategy stock falls below $100 as Bitcoin treasury model strains

MicroStrategy (formerly MicroStrategy) shares slipped below the $100 mark for the first time since March 2024, reaching a 52‑week low near $86. The decline coincided with Bitcoin prices falling below $60,000, eroding the unrealized value of the company’s roughly 847,000‑bitcoin treasury.

The company’s preferred security, STRC, began trading well below its $100 par value, raising concerns that future preferred‑stock issuances could become costly and limit capital‑raising options. Analyst commentary highlighted that the discount on STRC and the common stock undermines the premium that had previously supported the Bitcoin‑linked equity model.

Insider activity added to market pressure: Strategy director Jarrod Patten exercised and sold 1,500 shares at $106 each, extending a months‑long insider‑selling streak that has totaled more than 55,000 shares in the past three months. Other reports noted an 8‑10% intra‑day drop in the stock and a broader loss of investor confidence.

On‑chain analytics firm CryptoQuant warned the firm to pause further Bitcoin purchases and rebuild cash reserves, noting that dividend obligations on the preferred series have risen sharply while cash coverage has fallen to roughly 14‑10 months. The combined effect of falling share prices, preferred‑stock discount, Bitcoin price weakness, and heightened dividend liabilities has put the durability of MicroStrategy’s Bitcoin treasury strategy under scrutiny.