Bitcoin continued its slide after Strategy’s STRC preferred shares cratered to fresh lows. The stock, designed to trade at a $100 par value, fell to $74.13 — more than 25% below its target. BTC dropped to $58,188 before recovering slightly to around $59,273.
The sell-off triggered massive liquidations across crypto. Over $1.44 billion in positions were liquidated in 24 hours, with long positions accounting for $1.2 billion of that total. Bitcoin alone saw $658 million in liquidations.
Strategy’s financial position has drawn intense scrutiny. The company’s cash reserve has shrunk 38% since January, and dividend coverage has collapsed from seven years to just 14 months. Annual dividend obligations on STRC now stand at $1.2 billion, up from $300 million previously.
Michael Saylor defended the company’s approach, posting on X that “Digital Credit is income for investors who believe in Bitcoin.” But analysts aren’t convinced. CryptoQuant said Strategy should stop buying Bitcoin immediately to preserve cash, while JPMorgan has urged the firm to rebuild its reserves.
Strategy holds 847,363 BTC worth nearly $50 billion at current prices, but that stack is roughly $14 billion underwater from its average cost basis. The company sold 32 BTC earlier this month — its first sale since 2022 — a move some analysts see as a sign more liquidations could follow.
