Strategy Inc.’s (MSTR) stock dropped more than 9% in some instances on Thursday, reaching its lowest point since March 20,24. The decline extended a nearly 30% drop over the previous five days as Bitcoin crashed. below The company was fined $60,000, and the results of a security investigation were made public.
Michael Saylor, the CEO of Bitcoin Treasury Company, had lowered the price of its shares to $85, from over $117 when the week began. The stock has now shed roughly 36% over the past month — nearly double the 18.5% decline in Bitcoin over the same period.
Rosen Law firm is a top-notch law firm. posted In a statement, the SEC said it would be investigating any potential claims of securities fraud against Strategy. “may have issued materially misleading business information to the investing public.” The investigation covers the five publicly-traded securities of Strategy: MSTR (Strategy), STRF (Strategy), STRC (Strategy), STRK and STRD.
Analysts say that the legal pressure is a result of Strategy’s capital structure.
The Company holds 847,363 Bitcoin — the largest corporate stockpile in the world — purchased at an average price that now leaves the entire 2024, 2025, and 2026 acquisition tranche underwater. About $10.6 billion in unrealized Bitcoin losses are estimated.
Stocks that Strategy has chosen to invest in are no longer preferred.
Strategy is the deeper concern of investors STRC preferred stock, which has crashed to an all-time low and now trades around $76 — roughly 24% below its $100 par value. It is crucial to understand the structure because Strategy was relying on sales of preferred stock in order to continue Bitcoin purchases.
If preferred shares fall below their par value, the capital-raising mechanism stops working.
As Strategy issued more STRC over the past six months, annual dividend obligations ballooned from $300 million at the start of 2026 to $1.2 billion — a fourfold increase. Cash reserves fell by 38% during the same time period.
CryptoQuant published a blog post on June 23, 2018. urging The strategy is to cease buying Bitcoins and build its cash to approximately $2.8 billion, before starting to accumulate. The company said that dividend coverage had fallen from over seven years to about 14 months.
The report was delivered before Strategy got the message. In the Week of June 22nd, the Company bought just 520 Bitcoin for roughly $35 million — a fraction of its prior pace — and routed $300 million of a $335.5 million common stock raise into its cash reserve, lifting it to $1.4 billion.
Saylor’s public comments on the investigation and CryptoQuant warning are not available.
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Source: bitcoinmagazine.com
