Strategy's stock closed at $94.13 (-9.26%), the first sub-$100 close since March 2024, making the company's market capitalization worth less than the 847,363 BTC (~$53B) it holds. CryptoQuant's head of research formally recommended Strategy pause Bitcoin purchases as annualized dividend obligations hit $1.2B with coverage collapsed from 7+ years to just 14 months.
Strategy's stock closed at $94.13 (-9.26%), the first sub-$100 close since March 2024, making the company's market capitalization worth less than the 847,363 BTC (~$53B) it holds. CryptoQuant's head of research formally recommended Strategy pause Bitcoin purchases as annualized dividend obligations hit $1.2B with coverage collapsed from 7+ years to just 14 months.
Strategy (MSTR) crashed 9.26% to $94.13 on Wednesday June 24, marking the first close below $100 since March 2024 — a span of over 15 months during which MSTR served as Wall Street's primary proxy for Bitcoin exposure. The breach extended an 81% drawdown from the stock's all-time high, erasing approximately $153 billion in market value.
The most striking consequence: Strategy's market capitalization now sits below the value of its own Bitcoin holdings. The company holds 847,363 BTC (roughly 4% of Bitcoin's total supply) worth approximately $53 billion at current prices of ~$60,770 per BTC. An investor could theoretically buy the entire company for less than the Bitcoin on its balance sheet.
At Bitcoin's September 2025 peak near $93,000, that same stack was worth $78.8 billion — meaning $25 billion in Bitcoin value has vaporized as BTC declined 34% from its high. Strategy's average cost basis is $75,651 per BTC, putting the current price of $60,770 approximately 20% underwater.
The funding model is breaking in real time. Strategy's perpetual preferred stock (STRC) trades near $84, well below its $100 par value. CryptoQuant head of research Julio Moreno published a formal recommendation that Strategy pause Bitcoin purchases and rebuild cash reserves. His analysis shows annualized dividend obligations have climbed to $1.2 billion, while dividend coverage has collapsed from over seven years to approximately 14 months. Strategy would need roughly $2.8 billion in reserves to restore 24 months of coverage — double the $1.4 billion it currently holds.
The selling showed signs of capitulation. Volume spiked to 39 million shares, roughly 4x the stock's average, as the break below the psychologically critical $100 level triggered stop-losses and forced position reductions.
The broader crypto selloff compounded the pressure. Bitcoin fell 3.03% to $60,770 (down 20.65% monthly), while Ethereum dropped 2.90% to $1,617 and Solana declined 2.82% to $67.56. Spot Bitcoin ETFs recorded $459 million in net outflows the same day, and looming Mt. Gox creditor distributions (~$9 billion in BTC expected in July) add another supply overhang.
Peter Schiff publicly warned that Saylor may need to liquidate Bitcoin holdings to cover obligations — a scenario Strategy has consistently dismissed but that the math increasingly pressures.
Capital Group ($3.3T AUM) disclosed a 10.63% stake (136M shares, ~$203M) in Metaplanet, making it the largest shareholder of Japan's premier Bitcoin treasury company. The firm already holds a position in Strategy, now extending its Bitcoin treasury thesis across two jurisdictions.
T. Rowe Price, the $1.89 trillion asset manager, launched the T. Rowe Price Active Crypto ETF (TKNZ) on NYSE Arca — the first actively managed multi-token spot crypto exchange-traded product in the marketplace. The fund holds a diversified portfolio across Bitcoin, Ethereum, BNB, XRP, Solana, and Hyperliquid, with active allocation adjustments led by Blue Macellari, Head of Digital Assets since 2022.
The SEC approved an immediately effective rule change quadrupling IBIT options position limits from 250,000 to 1,000,000 contracts, enabling up to $5B in notional options exposure per participant. The approval landed the same day BlackRock reported record $15.3T AUM and $191.7B Q2 inflows, even as IBIT shed $3.3B during the quarter.