# MicroStrategy stock down 58% as Saylor funds Bitcoin buy with STRC

**Published:** 2026-06-25T17:33:02.453Z  
**Topic:** Microstrategy Bitcoin  
**Sentiment:** neutral  
**Publisher:** TrendWatcher — https://www.trendwatcher.in/article/b4a0b793-9c62-496b-9207-61e142b7bcf6

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 |

## Bitcoin buying powered by 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].

## Premium compression hurts the equity value  
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].

## Outlook hinges on mNAV and Bitcoin price  
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].

## What to watch
- Bitcoin price relative to the $75,700 cost basis, especially any close below that level.  
- mNAV trajectory: a rise back toward 2× could revive equity‑based funding; a further decline would cement reliance on STRC.  
- STRC dividend coverage: cash on hand ($2.25 bn) versus annual dividend cost ($1.71 bn) to gauge sustainability of the preferred‑stock model.

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.

## Sources
1. AOL — [Why Is MSTR Stock Down 58% YoY Despite Strategy’s Relentless Bitcoin Buying?](https://www.aol.com/articles/why-mstr-stock-down-58-115139495.html)
2. 24/7 Wall St — [Why Is MSTR Stock Down 58% YoY Despite Strategy’s Relentless Bitcoin Buying?](https://247wallst.com/investing/2026/05/19/why-is-mstr-stock-down-58-yoy-despite-strategys-relentless-bitcoin-buying/)

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Cite as: TrendWatcher, "MicroStrategy stock down 58% as Saylor funds Bitcoin buy with STRC", https://www.trendwatcher.in/article/b4a0b793-9c62-496b-9207-61e142b7bcf6