MSTR crash: Strategy shares plunge below $100 for the first time in 14 months
Shares of Strategy (MSTR) — the flagship tool for investing in bitcoin under the leadership of Michael Saylor — have broken through the psychological mark of $100 for the first time since March 2024. This is not just a correction, but a serious signal of a shift in market sentiment. The securities are currently trading below a level that recently seemed like reliable support.
The decline coincided with a weakening of the very first cryptocurrency: bitcoin is hovering around $61,000. The connection between Strategy shares and the price of BTC is becoming increasingly obvious — and increasingly painful for MSTR holders.
Chain Reaction: Why Bitcoin is Pulling MSTR Down
Strategy holds 847,363 BTC on its balance sheet — the largest corporate reserve in the world. The company has transformed from a software developer into a leveraged bitcoin asset. When BTC was rising, MSTR outperformed the market. Now the mechanism is working in reverse.
After retreating from the 2025 highs, the value of bitcoin reserves began to decline, and investor interest in risky leveraged instruments began to wane. This pressure pushed MSTR quotes below $100 — the last time shares were at this level was on March 1, 2024.
Main Threat: The Capital Attraction Mechanism is Breaking
The fall of bitcoin is only part of the picture. Taking center stage is STRC — Strategy's preferred instrument that helped finance BTC purchases. By design, its price should stay near the par value of $100, but recently it broke below this level.
Against this backdrop, borrowing costs for Strategy are only rising. The yield on STRC has increased, making it increasingly difficult to attract new money. For investors, this is a critical moment: Strategy's formula for accumulating bitcoin is entirely dependent on efficient access to capital. As soon as this source weakens, expectations for the company's growth decline.
Bitcoin Sale: A Crack in the Foundation
The situation was exacerbated by the disclosure of a sale of 32 BTC to finance payments on preferred shares. The transaction amount is insignificant compared to total holdings, but the symbolism of the move proved devastating.
For many years, Strategy built its reputation on the almost inviolable idea of "never selling bitcoin." Even a minor sale called this principle into question and drew attention to the company's liquidity.
Why MSTR is Falling More Than Bitcoin
MSTR is not just a proxy for bitcoin. It is effectively a leveraged proxy. When BTC depreciates:
- Strategy's bitcoin reserves lose value.
- Investor confidence in the financing model declines.
- Premiums to net asset value narrow.
- Financial risks become more apparent.
Ultimately, a feedback loop is triggered — the MSTR price often falls more sharply than bitcoin.
What's Next: Two Key Levels
Currently, investors are watching two key points: whether bitcoin can hold in the $60,000–$61,000 range, and whether confidence in Strategy's capital attraction strategy will remain.
If bitcoin holds firm, MSTR could show a sharp rise thanks to its leverage. But if pressure on BTC persists and financing questions remain unresolved, fixing the price below $100 could turn out to be more than just a technical event.
My analysis shows: for the strategy of holding bitcoin on the balance sheet, this could become a real turning point. If the capital attraction mechanism fails, we will see not just a correction, but a fundamental revaluation of the entire Strategy model. The market no longer forgives mistakes — and $100 is now not support, but a new reality.