Strategy Shares Fall Below $100 for First Time Since 2024 as Its Bitcoin Funding Model Strains

Shares of Strategy, the company formerly known as MicroStrategy, fell more than 10% to a two-year low near $92, dropping below $100 for the first time since March 2024 as Bitcoin slid under $60,000, Bitcoin Magazine reported. With Bitcoin below the average cost basis of its 2024, 2025, and 2026 purchases, the company is carrying an estimated $10.6 billion in unrealized losses on holdings of roughly 847,000 coins.

The deeper strain is in the financing model, not the share price. CryptoSlate detailed how Strategy's variable-rate perpetual preferred stock, ticker STRC, has traded below the $100 par value it is designed to maintain. If it stays there, investors will demand a higher effective yield, which makes preferred-stock issuance a more expensive way to fund Bitcoin purchases. Annual preferred-dividend obligations have climbed to about $1.2 billion from roughly $300 million, and the company's dividend coverage has fallen from more than seven years' worth at the start of 2026 to roughly 14 months.

That leaves a narrow set of choices, each with a cost. The firm can spend cash it has been conserving, sell Bitcoin into a falling market, or issue more shares and dilute existing holders. CryptoQuant's head of research, Julio Moreno, said Strategy should pause Bitcoin buying until cash reserves and dividend coverage recover, a recommendation echoed in coverage of the stock's fall under $100.

From an Austrian-economics view, the point is direct. A vehicle that funds a non-yielding asset with dividend-bearing liabilities depends on continuous access to cheap capital. When the funding instruments trade below par, the model's reflexivity works against it, and the question shifts from how much Bitcoin it can buy to how it services what it already owes.