Strategy Common Stock Falls 8 Percent to Lowest Level Since February 2024

Strategy's common stock MSTR closed at $86 on June 25, down 8 percent and at its lowest level since February 2024, CoinDesk reported. The company's perpetual preferred stock STRC traded at $75, a 25 percent discount to its $100 par value. Strategy maintains U.S.

Dollar reserves sufficient to meet STRC dividend obligations for almost 10 months. Its enterprise multiple to net asset value stood at 1.05 on the same day. Bitcoin traded at $59,178.93. Alexander Blume, CEO of Two Prime, said on June 25 that repeated changes in Strategy's plans combined with weak performance of MSTR and STRC have broken trust among retail investors.

"Saylor's repeated pivots and deviations from his stated plans, alongside poor performance of STRC and MSTR, have broken that trust," Blume stated in a Telegram message. Blume had warned in March that a product paying more than 6 percent over Treasuries must carry additional risk. He added that Strategy looks highly unlikely to be a meaningful buyer of bitcoin for the foreseeable future.

STRC was marketed as a low-volatility income product designed to trade near its $100 par value. The discount reduces the efficiency of Strategy's bitcoin acquisition and funding engine because the company can no longer issue the preferred shares on attractive terms.