CoinDesk
Strategy (MSTR) is on track to close June down roughly 41%, its worst monthly print since 2022 and the eleventh losing month in the last twelve. Shares traded as low as nearly $80 on Friday before a 12% Monday rebound after the company unveiled a new capital management framework, though the stock remains a shadow of its $540 all-time high set in November 2024.
The underperformance is structural, not just directional. MSTR's slide accelerated after the July 2025 debut of STRC, the perpetual preferred sitting above common equity. STRC gave investors a lower-volatility alternative to common stock, but funding its dividend obligations forced continued common-stock issuance, sharpening dilution concerns and weighing on the equity's multiple against its bitcoin holdings.
Why it matters
STRC was supposed to broaden the buyer base for Strategy's bitcoin-treasury thesis without taxing common shareholders. In practice it has compressed the equity's premium to NAV. Since STRC's IPO MSTR has significantly underperformed bitcoin itself, a reversal of the leverage-to-BTC trade that defined the stock through the 2023-2024 cycle. The capital framework unveiled this week is, in effect, the company's response to that breakdown.
Market impact
Bitcoin is on track for its third consecutive negative quarter and is down 20% in June, removing the tailwind MSTR needs to defend its premium. With dilution still active and BTC weak, the gap between MSTR's share price and the per-share value of its bitcoin treasury continues to compress, and the stock trades closer to a holding-vehicle proxy than a leveraged BTC bet.
Frequently asked questions
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Why is MSTR down 41% in June?
Weakness in bitcoin (down 20% in June and on track for a third consecutive negative quarter) has hit Strategy's equity, while continued common-stock issuance to fund STRC's dividend obligations has sharpened dilution concerns and compressed the stock's premium to NAV.
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What is STRC and how has it hurt MSTR?
STRC is Strategy's perpetual preferred security, launched in July 2025 and sitting above common equity. It offered a lower-volatility alternative to MSTR shares, but funding its dividend required continued common-stock issuance, which amplified dilution and contributed to MSTR's prolonged underperformance against…
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How does MSTR's underperformance compare to bitcoin's?
Since STRC's IPO in July 2025, MSTR has significantly underperformed bitcoin, a reversal of the leveraged-BTC trade that defined the 2023-2024 cycle. Bitcoin itself is down 20% in June and heading for a third straight negative quarter, removing the tailwind MSTR needs to defend its premium.
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What was MSTR's all-time high and how far has it fallen?
MSTR reached an all-time high of $540 per share in November 2024. Shares traded as low as nearly $80 on Friday before rallying more than 12% on Monday after Strategy unveiled a new capital management framework.
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Is MSTR still a leveraged bitcoin proxy?
With dilution from STRC funding still active and bitcoin weak, MSTR's premium to the per-share value of its bitcoin treasury has compressed. The equity is trading closer to a holding-vehicle proxy than a leveraged bet on BTC price moves.
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