Bitcoin’s sell-off deepened on June 26 as investors continued fleeing risk assets across global markets.
The world’s largest cryptocurrency briefly traded near $58,000, extending a decline that has pushed prices back to levels last seen in September 2024.
The broader crypto market also remained under pressure, with more than $1.1 billion in liquidations recorded over the previous 24 hours.
The weakness has coincided with a sharp deterioration in investor sentiment. The Crypto Fear & Greed Index currently sits at 16, placing the market in “Extreme Fear” territory.
However, this downturn has not just affected Bitcoin, but companies closely tied to Bitcoin have also come under pressure as investors reassess the risks associated with leveraged crypto exposure. Among the hardest hit has been Michael Saylor’s Strategy, whose stock has fallen sharply as Bitcoin continues to slide.
Related: Analyst compares Saylor’s Strategy to bankrupt crypto company
Strategy stock sinks as Saylor defends long-term approach
Strategy shares fell to as low as $85.33 on June 26, their lowest level since February 2024, extending a sharp decline that has seen the stock lose 27.5% over the past five days and nearly 47% over the past month, according to market data.
Meanwhile, Strategy’s STRC perpetual preferred stock dropped to a record low of $73.62, more than 26% below its $100 par value.
STRC (Strategy’s Variable Rate Series A Perpetual Stretch Preferred Stock) is a type of stock Strategy, formerly MicroStrategy, sells to raise cash, mostly to buy more Bitcoin. “Preferred” means holders get a steady monthly dividend (recently around an 11.5% annual rate) ahead of regular shareholders, and “perpetual” means it never matures or gets repaid. It is designed to trade near its $100 “par” value, so a drop to $73.62 signals investors are growing nervous about Strategy’s ability to keep funding those payments.
Popular on TheStreet Roundtable:
Strategy holds 847,363 BTC, currently valued at roughly $50.3 billion, making its balance sheet highly sensitive to cryptocurrency price swings.
Bitcoin’s retreat toward $59,000 has erased billions of dollars from the value of Strategy’s holdings on paper.
Responding to the sell-off on June 26, Strategy executive chairman Michael Saylor sought to reassure investors.
“Volatility tests every capital structure. Strategy remains focused on Bitcoin, disciplined capital allocation, credit quality, and long-term value creation,” Saylor wrote.
