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MicroStrategy shares fell 58% YoY while the firm bought $2 bn of Bitcoin using high‑yield STRC preferred stock, a $5.58 bn 2026 raise makes it the largest
MicroStrategy (MSTR) shares are trading near $166, a 58% drop from a year ago, even as the company added 24,869 BTC for $2.01 bn, funding the purchase almost entirely with its 11.5%‑yield STRC preferred shares [1].
| At a glance | |
|---|---|
| Stock price | $166 |
| 1‑yr change | –58% |
| BTC held | 843,738 BTC (~$64.8 bn) |
| Funding source | 95.9% STRC preferred stock |
Saylor’s strategy bought 24,869 BTC between May 11‑17 at an average $80,985 per coin, shortly before Bitcoin slipped to about $76,800, creating an immediate paper loss of roughly 5% per coin [1]. The purchase was financed 95.9% by sales of STRC preferred shares, which pay an 11.50% annual dividend, while only 4.1% came from common stock [1]. STRC has raised $5.58 bn in 2026, making it the world’s largest preferred‑stock issue by market cap, and its dividend obligations now cost MicroStrategy about $1.71 bn annually [1].
MicroStrategy’s market cap of $58.6 bn sits $6 bn below the Bitcoin balance sheet value of $64.8 bn, reflecting a mNAV (market‑to‑net‑asset‑value) multiple of 1.24×—down from a peak of 3.89× in November 2024 [2]. The premium collapse has stripped the equity of its “flywheel” advantage: when mNAV is high, new shares raise cash at a premium to Bitcoin value, diluting shareholders less. At today’s 1.24× multiple, issuing common stock adds little Bitcoin per share, so the company relies on high‑yield preferred debt to fund purchases [1][2].
The blended cost basis for the 843,738 BTC is $75,700 per coin; with Bitcoin hovering around $76,800 the portfolio holds roughly $900 m in unrealized gains [1]. A sustained price drop below $75,700 would erase that cushion and push the entire holding underwater for the first time. Meanwhile, the mNAV would need to climb toward 2× before common‑stock issuances become an efficient funding tool again [1].
MicroStrategy’s equity slump underscores how the market now values the company’s operational and brand assets at less than zero relative to its Bitcoin stash. The next move hinges on whether Bitcoin’s price and the mNAV premium can recover enough to make common‑stock financing viable again.
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AI-assisted synthesis by the TrendWatcher Editorial Desk · sourced from 2 outlets · Jun 25, 2026 · How we report
MicroStrategy holds 447,470 Bitcoin, valued at roughly $44.3 billion.
The offering is intended to provide capital for further Bitcoin acquisitions and will be senior to the company’s Class A common stock.
The $1.5 billion debt repayment reduced cash reserves by about 38% and lowered the STRC preferred‑stock price, increasing pressure on dividend coverage.
The company sold approximately 2.7 million common shares, raising $335.5 million, of which $300 million was allocated to its cash reserve.
Analysts cite dilution risk for shareholders, reliance on Bitcoin volatility for capital access, and the strain of rising preferred‑dividend obligations on liquidity.