Bitcoin (CRYPTO:BTCUSD) is trading near a two-week low, dragging Strategy (MSTR) shares below $100 for the first time since March 2024. The confluence of macro headwinds, accelerating ETF outflows, and mounting structural concerns about Strategy's preferred share obligations has amplified a sell-off that now stretches more than 38% over the past month for the Bitcoin treasury pioneer.
At a Glance
- BTC/USD recently trading at $62,658.40, down 2.02% on the day
- MSTR shares fell as low as $97.30 Wednesday, last seen under $100 on March 1, 2024
- MSTR is down roughly 20% over the past week and more than 38% over the past month
- Strategy's preferred shares (STRC) trading at $84.35, down 3.4% on the day after hitting a low of $82.53 last week
- Strategy holds approximately $52 billion worth of Bitcoin, making it the largest corporate BTC holder
| Price | 62658.4 |
|---|---|
| Day change | -1292.21 (-2.02%) |
| Volume | 12,417 |
Bitcoin Falls to a Two-Week Low as Macro Pressure Mounts
At $62,658, Bitcoin sits at its weakest point in two weeks. The number itself is not catastrophic in isolation, but the context makes it significant. BTC set an all-time high above $126,000 in October 2024, meaning the asset has now retraced more than 50% from its peak. That is not a minor pullback. It is a structural reversal that is reshaping sentiment across the entire crypto complex.
The forces driving the retreat are well documented at this point. Investors have been pulling capital out of spot Bitcoin ETFs, rotating instead toward AI-related equities where near-term growth narratives feel more actionable. The Federal Reserve's increasingly hawkish posture has also tightened the risk appetite that helped carry Bitcoin to its record high. Rate-sensitive assets, and Bitcoin increasingly trades like one, have felt the squeeze.
The last time BTC was trading in the $61,000 to $62,000 range with this kind of downside momentum, it was early March 2024. That historical comparison is worth holding onto, because it is precisely when MSTR also last traded under $100. The two assets have moved largely in tandem, but Strategy's leverage to Bitcoin amplifies both the upside and the downside considerably.
Strategy Shares Breach the $100 Floor
MSTR opened Wednesday under pressure and fell to $97.30 within the first half hour of trading, a level not touched since March 1, 2024. Shares were recently changing hands at $98.05, representing a decline of nearly 5.5% on the session. Zoom out and the picture is worse: the stock is off roughly 20% in the past week alone.
The contrast with the peak is stark. Earlier in 2025, as Bitcoin climbed in the wake of President Donald Trump's crypto-friendly policy signals and the broader market optimism those policies generated, MSTR shares pushed above $400. That euphoria has evaporated. What remains is a company sitting on a $52 billion BTC position with mounting questions about the financial instruments it used to get there.
Strategy's role in the market is worth appreciating precisely because it cuts both ways. As the architect of the corporate Bitcoin treasury model, a framework that other firms adopted and extended to other digital assets last year, the company's buying activity genuinely moved BTC prices higher during bull phases. The inverse is also plausible: its financial strain and the psychological weight of watching the sector's most prominent HODLer sell Bitcoin can suppress confidence during downturns.
The STRC Preferred Share Problem
The more structurally concerning development is what is happening with STRC, Strategy's preferred shares. These instruments were designed to trade close to $100 per share and have been the funding vehicle behind billions of dollars of Bitcoin purchases this year. The premise was simple: issue preferred equity, use the proceeds to buy more BTC, let Bitcoin appreciation cover the dividend obligations. That flywheel works beautifully when Bitcoin is appreciating.
Right now it is not. STRC fell to a low of $82.53 last week and was trading at $84.35 on Wednesday, down another 3.4% on the day. A preferred share designed to hold par trading at a 15-plus percent discount signals that the market is pricing in real concern about the company's ability to service its dividend commitments without liquidating Bitcoin holdings.
That concern took on new weight earlier this month when Strategy disclosed its first BTC sale since 2022. For years, company co-founder and executive chairman Michael Saylor maintained an unambiguous "buy and never sell" doctrine around Bitcoin. The sale shattered that narrative. Bitcoin had already been struggling to hold above $70,000 since around the start of June, and the disclosure landed at precisely the wrong moment psychologically for a market already nervous about macro conditions.
Strategy has since disclosed that it padded its cash reserves to $1.4 billion following the STRC turbulence, a move presumably intended to demonstrate it has the liquidity to cover near-term obligations without further BTC sales. Whether that reassurance holds depends heavily on where Bitcoin goes from here.
What the Numbers Say
Bitcoin at $62,658 is down 2.02% on the day, sitting inside what has become a compressed trading range. The asset's 50-plus percent drawdown from its all-time high places it firmly in bear-market territory by traditional definitions, even as the absolute price level remains historically elevated compared to cycles prior to 2021.
For MSTR specifically, the valuation math is uncomfortable. The company's stock has historically traded at a significant premium to its net asset value, reflecting investor willingness to pay for Saylor's ability to continue accumulating BTC at scale. That premium tends to compress when Bitcoin falls sharply, because the NAV itself is declining while the financial obligations attached to the preferred share structure remain fixed. A stock that peaked above $400 and is now trading at $98 has lost roughly three-quarters of its value from the top, a drawdown that exceeds even Bitcoin's own retracement.
The bull case rests on Bitcoin recovering and STRC stabilizing, which would restore the funding mechanism and allow Strategy to resume accumulation. The bear case is more immediate: continued BTC weakness could force additional asset sales, each of which would further erode the "never sell" credibility that underpinned much of MSTR's premium valuation. STRC trading at an 85-cent-on-the-dollar discount to par keeps that bear case firmly in view.
Frequently Asked Questions
Why did MSTR shares fall below $100?
Strategy shares dropped below $100 on Wednesday as Bitcoin fell to a two-week low near $62,000, amplifying a broader sell-off that has sent MSTR down more than 38% over the past month. Concerns about the company's preferred share obligations and its first Bitcoin sale since 2022 have added to downward pressure on the stock.
What are STRC preferred shares and why do they matter?
STRC is Strategy's preferred share instrument, designed to trade near $100 and used to raise capital for Bitcoin purchases. When STRC trades well below par, as it has been doing recently, it signals market concern that Strategy may struggle to meet dividend obligations without selling Bitcoin holdings.
Why has Bitcoin been falling recently?
Bitcoin has been under pressure from a combination of ETF outflows, competition from AI-related equities attracting risk capital, and a more hawkish Federal Reserve stance. The asset has fallen more than 50% from its October 2024 all-time high above $126,000.
What is the corporate Bitcoin treasury model?
Pioneered by Strategy, the model involves a publicly traded company holding Bitcoin as its primary treasury reserve asset rather than cash, funded through equity and debt issuance. The approach spread to other firms and other cryptocurrencies in 2024, but its viability depends on sustained BTC price appreciation to cover financing costs.
Where Things Stand Heading Into the Next Session
Bitcoin near $62,600 and MSTR below $100 represent a meaningful inflection point for the corporate crypto treasury thesis. The degree to which Strategy can stabilize its preferred share program without further BTC sales will likely determine whether the stock finds a floor near current levels or continues lower. Crypto's volatility makes any short-term price projection speculative at best. What the current data does confirm is that the assumptions baked into the MSTR premium during the $400 era have been substantially repriced, and the path back requires Bitcoin to do considerably more work than it has managed in recent weeks.
