Strategy's Leveraged Bitcoin Model Faces First Stress Test

Strategy, formerly MicroStrategy, has raised funds through debt, common shares and preferred stock to buy Bitcoin since 2020, relying on its stock trading at a premium to the net value of its holdings to sustain the financing cycle. Grayscale said simultaneous declines in Bitcoin and MSTR, coupled with higher funding costs, would weaken the company's ability to keep buying and could remove a major source of market support.

On June 1, 2026, Strategy sold 32 Bitcoin at an average price of $77,135 each, raising about $2.5 million in its first Bitcoin sale since December 2022 and reducing its holdings to 843,706. Grayscale said on June 5 that Bitcoin had subsequently fallen 16%, while MSTR had dropped 12.8% to $126. STRC also fell to about $95, below its $100 target price.