Strategy Stock Hits Four-Month Low as Bitcoin Falls Below $60,000
Strategy (formerly MicroStrategy) saw its stock price drop to a four-month low on Friday, closing at $120 after falling as low as $114, as Bitcoin slid below $60,000 for the first time since early 2024. The company also sold 32 BTC for $2.5 million, its first Bitcoin sale since 2022, to demonstrate that it could pay dividends on its preferred stock (STRC). STRC, which offers an 11.5% annual dividend, fell 3.6% to $93, well below its $100 par value. Benchmark-StoneX analyst Mark Palmer downplayed the decline, noting that STRC's rate-reset mechanism can increase dividends to boost demand. Strategy's Bitcoin holdings, worth $50.4 billion, are now $13.7 billion underwater relative to their purchase price. The company had previously set aside $2.25 billion to cover STRC distributions but used 61% of those reserves to repurchase debt last month.
Key facts
- Strategy stock dropped to $114, a four-month low, before closing at $120.
- Bitcoin fell below $60,000 for the first time since early 2024.
- Strategy sold 32 BTC ($2.5M), its first Bitcoin sale since 2022.
- Preferred stock STRC fell 3.6% to $93, below its $100 par value.
- Strategy's Bitcoin holdings are $13.7 billion underwater.