Strategy (MSTR), the Bitcoin treasury company led by Michael Saylor, has fallen below $100 for the first time since March 2024, marking a major reversal for one of Wall Street’s most popular Bitcoin-linked stocks.

The drop comes as Bitcoin trades near $61,000, highlighting the increasingly tight relationship between Strategy’s share price and the cryptocurrency that now dominates its balance sheet.

Bitcoin’s Decline Started the Chain Reaction

Strategy owns 847,363 Bitcoin, making it the largest corporate holder of the asset globally. That massive position transformed MSTR from a software stock into a leveraged Bitcoin vehicle.

When Bitcoin surged, MSTR often outperformed. The reverse is now happening.

As Bitcoin retreated from its 2025 highs, the value of MicroStrategy’s Bitcoin treasury fell alongside investor appetite for leveraged crypto exposure.

That pressure pushed MSTR through the psychologically important $100 level last tested on March 1, 2024.

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The Bigger Problem: Strategy’s Funding Engine Is Under Pressure

Bitcoin’s decline alone does not explain the magnitude of the selloff.

A key concern is STRC, Strategy’s preferred stock vehicle that has been used to help fund Bitcoin purchases. The security was designed to trade near its $100 par value, but recently slipped well below that level.

As STRC fell, its effective yield climbed sharply, increasing Strategy’s financing costs and making it harder to raise fresh capital on attractive terms.

For investors, this matters because Strategy’s Bitcoin accumulation formula depends on efficient access to capital. When that funding engine weakens, growth expectations weaken too.

The First Bitcoin Sale Shook Investor Confidence

The pressure intensified when Strategy disclosed the sale of 32 Bitcoin to fund preferred stock distributions.

The amount sold was tiny relative to the company’s holdings, but the symbolism mattered.

For years, Strategy built its reputation around a near-sacred “never sell Bitcoin” philosophy. Even a small sale challenged that narrative and sparked fresh scrutiny of the company’s liquidity needs.

Why MSTR Fell Harder Than Bitcoin

MSTR is not just a Bitcoin proxy. It is a leveraged Bitcoin proxy.

As Bitcoin falls:

• Strategy’s Bitcoin holdings lose value.
• Investor confidence in the funding model declines.
• Premiums to net asset value compress.
• Financing concerns become more visible.

That combination creates a feedback loop that often causes MSTR to move far more aggressively than Bitcoin itself.

What’s Next?

Investors are now watching two critical levels:

• Bitcoin’s ability to hold the $60,000-$61,000 range

• Strategy’s ability to maintain confidence in its capital-raising model.

If Bitcoin stabilizes, MSTR could rebound sharply given its leverage to the asset. But if Bitcoin remains under pressure and funding concerns persist, the stock’s break below $100 may be remembered as more than just a technical milestone.

It could mark a turning point for the Bitcoin treasury trade.

Source: BeInCrypto