Bitcoin holders have faced significant challenges over the past eight months as the cryptocurrency experienced a dramatic decline. After reaching a staggering peak of $126,198.07 in October of the previous year, Bitcoin’s value has plummeted by 52% as of late June. The situation has been particularly distressing for Strategy, formerly known as MicroStrategy, which is the largest holder of Bitcoin in the world, boasting an impressive 847,363 units. Despite skyrocketing by 723% over the past six years, Strategy’s share price has now fallen 80% from its record highs, trading below $100 for the first time since early 2024.
The question now arises: Is Strategy a buy, sell, or hold at this juncture?
To bolster its Bitcoin accumulation, Strategy recently tapped into a distinctive financial mechanism: its STRC perpetual preferred equity offering. This initiative, launched in July 2025, has thus far raised $10.5 billion, marking it as one of the largest preferred equity offerings in history. Michael Saylor, the company’s billionaire founder, refers to this strategy as “digital credit.” Intended to shield investors from the inherent volatility and risks associated with Bitcoin, STRC is designed for those seeking stability in returns. Currently, investors receive annual dividends of $11.52 per share, translating to an effective yield of 15.4%.
However, the STRC has shown fluctuations in value since late May, falling to $74.57, well below its intended par value of $100. This significant drop reflects waning confidence in Strategy’s financial stability, complicating the company’s ability to raise capital through this instrument. Nevertheless, Strategy has maintained a consistent dividend payment history for STRC and its other preferred equities, with the next payout scheduled for July 15. Meeting this obligation could demonstrate to the market that the company’s financial structure remains robust.
As for its current stock performance, Strategy has seen a notable change of -3.54%, positioning its current price at $82.31. The key financial metrics include a market capitalization of $29 billion and a trading volume of 45.7 million shares. While the company’s gross margin stands at an impressive 68.11%, the volatility of this stock cannot be ignored.
Strategy’s positioning represents a leveraged bet on Bitcoin’s price, which inherently comes with high risks and the potential for significant rewards. Investors who found Strategy appealing at higher price points may find the current valuation around $94 offers an even more attractive opportunity. With a diluted market cap of $29.4 billion, relative to the $51.6 billion worth of Bitcoin on its balance sheet, the company also maintains a cash reserve of $1.4 billion that could be utilized to meet financial obligations.
For those with a long-term investment outlook and the patience to ride out current market uncertainties, acquiring shares may prove beneficial. It remains crucial, however, for potential buyers to size their positions appropriately in light of the inherent risks associated with this volatile stock.
