Michael Saylor's Strategy Faces Meltdown as MSTR, STRC Hit 52-Week Lows
Michael Saylor's bet on Bitcoin via Strategy shares is under fire as MSTR and STRC plummet to 52-week lows. The company's funding model is breaking down, with preferred shares trading at a deep discount and dividend obligations soaring. This isn't just volatility; it's a capital structure crisis.
Michael Saylor is talking tough, but his Strategy shares and preferred stock (STRC) are getting hammered, hitting 52-week lows. Saylor claims "volatility tests every capital structure" and vows to stay focused on Bitcoin and "long-term value creation." Translation: the model is under extreme stress. MSTR is down over 80% from its peak, and STRC is trading at a 26% discount to par. This isn't a good look when your entire strategy relies on issuing debt above NAV to buy Bitcoin. The math is simple: when preferred shares trade below par, the capital tap dries up. Strategy's paper losses on its massive Bitcoin holdings now exceed $14 billion, with an average purchase price far above current market levels. Adding insult to injury, annual dividend obligations have quadrupled to $1.2 billion in just six months, while cash reserves have cratered 38%. Dividend coverage is now a mere 14 months. Even CryptoQuant is telling Saylor to halt buys and hoard cash. The market isn't buying Saylor's spin; Strategy's recent BTC sale and equity raise were more about survival than accumulation.