Strategy’s stock has seen renewed downside pressure. Investors are now considering the triple threat: falling Bitcoin prices, dwindling demand for its public shares; and legal worries. While most crypto-related stocks posted positive results, Strategy (NASDAQ: MSTR) underperformed again. This persistent underperformance shows the market’s concerns around Strategy’s high-risk Bitcoin accumulation.
Strategy Stock Compared to Other Crypto Stocks
On June 26 Strategy (NASDAQ: MSTR) fell another 3.45%, closing at $82. This continued multiple days of downward pricing, while the rest of the crypto stocks were resilient. Coinbase (NASDAQ: COIN) increased 4.59%, closing at $149, and Circle (NYSE: CRCL) increased 6.95%, closing at $73.
This divergence has caused investors to focus on Strategy’s 3 main issues: falling Bitcoin prices; a sharp decline in the STRC preferred shares; and growing legal problems for the company.
Bitcoin Price Drop is Hurting Strategy
Strategy’s balance sheet is under the most pressure because of their vast Bitcoin holdings. They are currently the largest publicly traded corporate holder of Bitcoin at approximately 847,363 Bitcoins.
This widespread decline in the price of Bitcoin has impacted Strategy severely because their Bitcoin holdings are reflecting approx. $13 billion in losses. For years, investors were not concerned about this theoretical loss because of Michael Saylor’s strong position of never selling. However, investor sentiment has changed since Strategy’s sale of 32 Bitcoins in May 2026.
That transaction raised concerns about whether more Bitcoin sales could happen.
Investors Reassess Strategy’s Bitcoin Exit Policy
Further uncertainty is expected from Strategy’s 2025 SEC filing, where it stated there is a possibility it would sell Bitcoin if its modified Net Asset Value (mNAV) goes below 1.22x.
Reports show that Strategy’s mNAV is operating around 0.999 and below the stated value. It is possible that the company will begin to sell Bitcoin to help fill the financial gap, which has caused investors to feel more pessimistic.
STRC Preferred Shares Fall Further
Strategy’s financing model is taking more hits as its STRC preferred stock is selling below its $100 par value and has recently traded almost 29% lower.
The company has been depending almost exclusively on the issue of STRC preferred shares to raise money and buy more Bitcoin. The lower the preferred shares, the lower the appetite to invest, and the duller it becomes for Strategy to find new financing.
Brad Garlinghouse, the CEO of Ripple, has recently been critical towards the financing techniques, stating that if the STRC continues to lose strength, it will affect the trust in the crypto market and beyond.
Legal Pressure Increases
Concerns from investors are compounded by the announcement from the Rosen Law Firm that the firm is investigating the possibility of securities claims regarding Strategy. The firm has requested investors who feel that they were deceived with respect to their investments in MSTR or STRC to come forward for the purpose of a potential class-action lawsuit.
From the time of this announcement, the value of MSTR has declined from approximately $94 to $82.
Peter Schiff, who is critical of Bitcoin, has suggested that declines of the shares of MSTR and STRC will likely cause further legal problems for the firm, although Michael Saylor has rejected these claims, saying on X that Strategy “will continue to execute with transparency and resolve.”
Technical Outlook Is Negative
Strategy continues to look weak from a technical standpoint. For the first time since 2024, the share price closed below the $100 threshold and has been the target of sustained selling.
Trading has primarily been negative since mid-May, signaling that many investors are selling their positions. The Relative Strength Index (RSI) has dropped to 28, further demonstrating the stock’s bearish momentum.
In addition, the Awesome Oscillator (AO) has red histogram bars below the zero line, indicating that the stock continues to have a strong bearish outlook. With the continued pressure on Bitcoin and STRC, many technical analysts focus on the likelihood of MSTR reaching support of $65.20 for the month of February 2024 in the coming weeks.
