TLDR
- MSTR stock dropped to $173.55, marking a new 52-week low for the company.
- The stock briefly bounced to $176 but stayed near its lowest yearly range.
- MSTR stock has fallen 40 percent in 2025 and over 62 percent in the past year.
- Strategy has not yet completed its full common stock issuance plan.
- The company aims to continue selling MSTR stock to fund its operations until 2030.
MSTR stock dropped to a new 52-week low of $173.55 this week. The decline tracked the broader Bitcoin dip, which fell below $88,000. MSTR stock briefly recovered to $176 but remained near its year-low.
Ongoing Slide in MSTR Stock Sparks Concerns
MSTR stock has now declined by more than 40% in 2025 and by 62% over the past 12 months. The slide raised concerns about the Strategy’s business model’s viability. Investors tracked MSTR’s daily movements as it mirrored BTC’s weakness.
MicroStrategy Incorporated, MSTR
Strategy has not yet completed its whole common stock issuance plan. The company intends to continue selling MSTR stock through 2030. At current levels, this strategy may be unworkable.
BTC now trades below the Strategy’s average acquisition cost of $74,000. The company’s BTC treasury is mostly underwater. The falling MSTR stock price is limiting the company’s financing flexibility.
Preferred Shares Fall Below Par Value
To support operations, Strategy issued preferred shares labeled STRD, STRK, STRF, and STRC. These shares once traded near $100. Now STRD trades at $66, STRK at $75, STRF at $95.08, and STRC at $92.02.
This decline points to increasing pressure on Strategy’s financing instruments. The lower price implies higher yields, but also greater market risk. Preferred shares are generating losses for current holders.
While these instruments helped Strategy buy more BTC, they added financial obligations. These obligations now limit further BTC accumulation. Strategy’s debt servicing needs have increased.
MSTR stock’s drop has also pushed Strategy’s total valuation below the net value of its BTC treasury. The company’s fully diluted market cap is now below its total BTC asset value. The FDV/NAV ratio has dropped to 0.98.
Concerns Over Model and Valuation Ratio
Despite no dilution in recent weeks, MSTR stock continues to lose investor confidence. The number of BTC per MSTR share has increased. However, this metric has not supported the MSTR stock price.
Strategy’s playbook relies on long-term BTC accumulation. Yet market conditions are challenging this approach. Current funding methods may not sustain future BTC purchases.
Michael Saylor, Strategy’s executive chairman, addressed market concerns. “We are positioned to hold through a BTC drop of up to 80%,” he said. The statement attempted to ease pressure on MSTR stock.
However, selling BTC to raise funds could depress prices further. Such moves might trigger reputational damage. These concerns continue to weigh on MSTR stock.
MSTR stock’s current price is nearing levels last seen during the dotcom crash. The company’s history adds to investor uncertainty. MSTR stock now trades well below its 2025 peak.
As of Thursday, MSTR stock remained volatile in early trading. BTC also failed to recover above $88,000. Both assets continued facing downside pressure heading into the weekend.
