Strategy’s stock (MSTR) dropped below $100 on Wednesday, June 23. It has continued a massive sell-off in recent months that has wiped out most of its market value.
MSTR Stock Price Crashes Under $100
The MSTR stock fell 5.82% on the day to $97.79. Moreover, the Strategy share price has plunged nearly 20% just over the past five trading days. It also lost over 38% share value in the last 6 months.
The latest drop has triggered a renewed discussion about Strategy’s corporate treasury model. Bitcoin critic Peter Schiff foresees that further declines in the MSTR stock price may lead to some tough choices like selling BTC.
On X, Schiff warned, “If short sellers push $MSTR’s price low enough, they can put Saylor in a position where his best option would be to sell Bitcoin to buy back stock.” He further claimed that such a move “would reduce the discount” on MSTR stock but couldn’t guarantee a resurgence. Further, he cautioned that “Bitcoin will crash” if the company is compelled to sell its holdings.
Strategy’s Stock Sale Attracts Criticism
His comments come at a time when investors are looking at Strategy’s equity sales and capital allocation since the company’s last few transactions. The company sold roughly 2.71 million MSTR shares last week, for about $335.5 million worth of proceeds, according to regulatory disclosures.
It seems a fraction of that was allocated to increasing the company’s Bitcoin holdings. Following his usual Sunday social media teaser, Executive Chairman Michael Saylor revealed that Strategy had bought 520 BTC for about $35 million.
In addition, the company added about $300 million to its U.S. dollar balance sheet reserves to reach about $1.4 billion. These proceeds also came from the MSTR stock sale.
At the time, Saylor states that the cash build-up is linked to its plans to continue replenishing cash to maintain credit quality of its Digital Credit securities. The MSTR stock sale transaction comes as a result of STRC’s recent slide below $83 last week.
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