Strategy (MSTR) Stock Falls 5.09% as Strategy STRC Hits Record Low $89

Strategy (MSTR) Stock

MSTR Drops 5% as Strategy's Bitcoin Funding Stock Hits $89 Record Low

Strategy's preferred stock funding machine just seized up — and MSTR is paying the price.

Key Takeaways:

  • Strategy (MSTR) Stock fell 5.09% to $116.56 on June 18, 2026

  • STRC preferred stock hit a record low of $89, pausing Strategy's Bitcoin-buying ATM program

  • The Fed dot plot now shows 9 of 18 members expecting a rate hike before year-end

  • Strategy sold 32 BTC in May — its first Bitcoin sale since 2022 — to fund STRC dividends

MSTR Slides to Eight-Month Low

Strategy (MSTR) Stock closed at $116.56 on Wednesday, shedding $6.25 or 5.09% in a single session. It opened at $123.01, briefly touched $125.42, then fell to an intraday low of $116.36.

Volume reached 18.05 million shares. Premarket on June 18 showed MSTR recovering slightly to $118.58, as per CoinStats.

The technical picture is unambiguously bearish. RSI (14) sits at 35.71, approaching oversold territory.

All three major moving averages — MA-20 at $121.91, MA-50 at $125.35, and MA-200 at $196.21 — stack overhead in a classic downtrend formation.

MSTR has now dropped over 67% from its October 2025 high above $360.Strategy (MSTR) Stock Price Chart

STRC Breaks Below Its Own IPO Price

The sharper story is happening in Strategy's preferred stock. STRC — the Variable Rate Series A Perpetual Stretch Preferred Stock — closed at $89 on June 17, touching an intraday low of $88.50.

Both are records since it launched in July 2025 near its $100 IPO price.

STRC is engineered to hold near $100 par through a monthly-adjusted variable dividend, currently yielding 12.9% annually. It hasn't traded at par since May 15.

The mechanism matters: when STRC trades above $100, Strategy issues new shares through its at-the-market program and converts the proceeds into Bitcoin. That pipeline is now shut.

On June 17 alone, STRC saw $417.5 million in trading volume — a sign of intense market stress, not routine activity.

Adding competitive pressure, Strive's SATA preferred stock trades above $99 with a 13.69% yield, pulling income investors away from Strategy's product.

Strategy Breaks the "Never Sell" Pledge

The STRC selloff didn't happen in isolation. In late May, Strategy sold 32 Bitcoin for approximately $2.5 million to fund STRC dividend payments — the company's first Bitcoin sale since 2022 and a direct break from Chairman Michael Saylor's longstanding commitment never to liquidate holdings.

Strategy currently holds approximately 846,842 BTC at an average cost of $75,658 per coin. With Bitcoin near $64,000, the portfolio carries a paper loss of roughly $11,658 per coin.

The company's USD reserve has declined from $2.25 billion at the start of 2026 to approximately $1.1 billion.

Analysts at Benchmark and TD Cowen say a full "death spiral" remains unlikely, though reserve erosion is a metric investors are now tracking closely.

A Hawkish Fed Tightens the Screws on Bitcoin

The Federal Reserve voted 12-0 to hold rates at 3.50%–3.75% on June 17. The headline decision was no surprise. The dot plot was.

Nine of 18 FOMC members now project at least one rate hike before year-end 2026. PCE inflation was revised sharply to 3.6% from a prior 2.7%. New Fed Chair Kevin Warsh eliminated forward guidance from the statement entirely.

Bitcoin dropped toward $63,000 in the aftermath, triggering $122 million in crypto liquidations.

For Strategy (MSTR) Stock, the logic is direct: higher rates increase the opportunity cost of holding a non-yielding asset like Bitcoin, hitting the core thesis on which the entire balance sheet is built.

Price Targets and What Comes Next

Key technical levels to watch:

  • Support: $114.73 (daily pivot S1), $119.83 (volume cluster)

  • Resistance: $125.35 (MA-50), then $129–$145 overhead

  • 52-week low: $104.17

Fourteen Wall Street analysts maintain an average 12-month price target of $351.54 for MSTR — implying over 200% upside from current levels. Another analyst models a 2026 range of $124.03–$226.65.

Both scenarios hinge on a Bitcoin recovery well above $75,000. The near-term catalyst is simpler: if it cannot reclaim its $100 par value, Strategy's primary Bitcoin-buying engine stays offline — and MSTR has little fundamental tailwind without it.

This article is for informational purposes only and does not constitute investment or financial advice. Always conduct your own research and consult a licensed financial advisor before making investment decisions.

Lokesh Gupta

About the Author Lokesh Gupta

Research Analyst at coingabbar.com

Lokesh Gupta started his journey in financial markets 23 years ago and never looked back. From Forex to Comex, NSE, MCX, NCDEX, and now Crypto — he has seen it all. He holds an MBA in Finance and over the last 4 years, Bitcoin, Ethereum, Solana, XRP, and trending coins have become his main focus. People who follow his work say one thing — he keeps it real. No fancy language, no unnecessary complexity. Just honest market research that helps you understand what is happening and why it matters to your money.

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