Key Highlights
- The company maintains a position of 847,363 BTC valued at approximately $50.8 billion, but with bitcoin near $60,000 and an average purchase price of roughly $75,646 per coin, the holdings show an unrealized deficit of about $13 billion.
- Executive Chairman Michael Saylor shared his characteristic “we’re gonna need more charts” message on X, suggesting an imminent BTC acquisition announcement potentially arriving as soon as Monday.
- MSTR shares declined to approximately $82, marking the lowest price point since February 2024, while the preferred shares STRC reached an all-time low around $71 during the previous week.
- For the first time, Strategy’s enterprise mNAV metric dropped beneath 1, indicating the market is pricing the firm below the actual value of its bitcoin treasury.
- Both Ripple’s CEO Brad Garlinghouse and blockchain analytics provider CryptoQuant have openly questioned Strategy’s financing approach, with CryptoQuant recommending a temporary halt to further acquisitions.
Strategy (MSTR) shares have declined to their weakest position since February 2024, currently changing hands around $82 following an approximately 8% decline last Thursday. Meanwhile, the company’s preferred shares, STRC, reached an unprecedented low near $71 during the prior week.
Despite this, Michael Saylor remains undeterred.
On Sunday morning, the executive chairman of Strategy shared the firm’s bitcoin purchase tracking chart on X with his familiar message: “We’re gonna need more charts.” This identical approach preceded verified acquisitions on both June 7 and June 21. Market observers anticipate a potential Monday 8-K regulatory filing.
The company’s bitcoin treasury stands at 847,363 BTC with an average acquisition cost of approximately $75,646 per token. With bitcoin prices hovering below $60,000, the portfolio faces roughly $13 billion in unrealized losses. According to estimates from The Block, this deficit could reach as high as $14 billion as the market downturn intensifies.
Strategy’s latest acquisition represented its most modest purchase in recent weeks. On June 22, the firm revealed a 520 BTC transaction worth approximately $35 million while simultaneously adding $300 million to its cash reserves, bringing that total to $1.4 billion. Saylor previously stated the organization maintains approximately 10 months of reserves designated for STRC dividend commitments.
Financial Model Faces Scrutiny
The dual pressures of declining equity prices and discounted preferred shares have driven Strategy’s enterprise mNAV below the critical threshold of 1 for the first time. This indicator measures the firm’s complete market capitalization — encompassing debt and preferred equity — relative to its bitcoin asset value. When this ratio falls below 1, generating additional capital through new share issuances becomes significantly more challenging.
STRC features an 11.5% annual dividend rate and was structured to maintain pricing near its $100 nominal value. Current trading shows it around $74.57.
Analysis from Block Research highlighted that MSTR common shareholders effectively hold a position subordinate to approximately $6.7 billion in convertible bonds and roughly $15.5 billion in perpetual preferred shares, transforming it into a leveraged residual position rather than a straightforward bitcoin exposure vehicle.
Strategy executed its first BTC disposal since 2022 on June 1, liquidating 32 coins for approximately $2.5 million to satisfy a STRC dividend payment, before resuming its pattern of weekly purchases.
Industry Voices Raise Concerns
Ripple’s CEO Brad Garlinghouse expressed concerns to CNBC on Friday, stating that Saylor’s team “wasn’t focused on the right stuff” and that Strategy’s methodology had negatively impacted the wider market. He referenced STRC’s trading discount as proof of structural weaknesses in the model.
Blockchain analytics company CryptoQuant issued stronger guidance on June 23, recommending Strategy completely suspend acquisitions and focus on strengthening its cash reserves. The firm’s head of research, Julio Moreno, noted that dividend commitments have expanded fourfold to approximately $1.2 billion per year, with STRC coverage declining from more than seven years to approximately 14 months. CryptoQuant calculated that Strategy requires around $2.8 billion in reserves to reestablish two years of dividend coverage.
Bitcoin was exchanging hands below $60,000 on Sunday, approaching its weakest valuation since October 2024.
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