Michael Saylor defended Strategy’s funding model as MSTR and its variable-rate perpetual preferred STRC slid, Bitcoin fell to $58,000, and scrutiny mounted over cash strain and dividend coverage.
Strategy’s common shares and its variable-rate perpetual preferred STRC hit 52-week lows as Michael Saylor said the company remains focused on Bitcoin, disciplined capital allocation, credit quality, and long-term value creation. The selloff has intensified pressure on the company’s financing model: MSTR has fallen more than 80% from its all-time peak, STRC traded near $74 versus a $100 par value, and the stock’s mNAV has slipped below 1.0, leaving Strategy valued at a discount to the bitcoin on its balance sheet. Bitcoin’s drop to $58,000 pushed the company’s paper losses above $14 billion, given holdings of 847,363 bitcoin bought at an average of $75,680 per coin. Pressure has also grown on cash flows, with annual dividend obligations on Strategy’s preferred instruments rising to $1.2 billion from $300 million at the start of 2026, cash reserves down 38% this year, and dividend coverage reduced to about 14 months. The company also made its first bitcoin sale in four years in early June and recently directed $300 million of a $335.5 million equity raise into cash rather than bitcoin.