Strategy’s (NASDAQ: $MSTR) stock is headed for its eleventh consecutive month of losses as the price of Bitcoin (CRYPTO: $BTC) continues to decline.
Heading into June 30, Strategy’s stock is down 44% on the month, its worst performance since 2022. In the last 12 months, MSTR stock has fallen 79% to trade at $84.32 U.S. a share.
The stock reached an all-time high of $540 U.S. per share in November 2024 before a sustained decline took hold.
In recent weeks, Strategy’s main stock has dropped as investors grow increasingly concerned about the company’s Bitcoin acquisition strategy and its preferred stock (NASDAQ: $STRC).
The need for Bitcoin sales and the continued issuance of common stock to help fund STRC’s bi-monthly dividend that yields 12% has raised dilution concerns among investors.
At the same time, Bitcoin’s price has decreased by almost 50% since last October and is trading at $58,400 U.S. on June 30.
Bitcoin is on track to post its third consecutive negative quarter and has fallen 20% in June alone, further pressuring Strategy’s stock.
Strategy, led by Chairman Michael Saylor, is the world’s largest corporate owner of Bitcoin. The company currently owns 720,737 Bitcoin that’s worth $42 billion U.S.
The company recently enacted new governance rules that will enable it to sell Bitcoin to help fund the dividend on STRC stock, as well as stock buybacks and its ongoing operations.
Some analysts say that Strategy’s business model looks increasingly shaky with Bitcoin’s price continuing to decline.
