'Bitcoin Shadow Stock' Myth Shattered? MicroStrategy Suffers 8-Day Decline, Stock Price Hits 2024 Low

T radingKey - Strategy's share price has fallen for eight consecutive trading days, losing a cumulative 36%, and may continue to slide toward $65 in the short term.

On June 26, Eastern Time, the Bitcoin proxy stock Strategy ( MSTR) continued to edge lower in pre-market trading, temporarily hovering at $85.25. Yesterday, the company's share price fell to $85.33, touching its lowest level since February 2024. Since June 15, Strategy has fallen for eight consecutive trading days, with a cumulative decline of 36%, far exceeding Bitcoin's ( BTC) 10% drop over the same period.

Strategy stock price chart, Source: TradingView

The slump in Strategy's stock price is not simply due to the pullback in Bitcoin prices, but also involves a structural squeeze in the company's capital structure. Over 95% of Strategy's assets are in Bitcoin, making MSTR essentially a 'leveraged voucher' for Bitcoin. Bitcoin's recent drop below $60,000 has triggered a corresponding decline in its stock price. As of June 26, Strategy held 847,000 BTC, accounting for over 4% of the total supply, ranking first globally.

The turmoil surrounding Strategy's perpetual preferred stock (STRC) has exacerbated market selling pressure. Recently, STRC prices have continued to decline, not only falling below the original par value of $100 but also plunging to a record low of around $75 yesterday. This has significantly increased Strategy's dividend payment burden and severely damaged market confidence, with investors even drawing comparisons to past algorithmic stablecoin collapses in the crypto market.

STRC price chart, Source: TradingView

To sustain its strategy of continuously buying Bitcoin and to manage its financing, Strategy's cash reserves have shrunk by about 38% since the beginning of 2026, and the company conducted debt buybacks in May. Although the company replenished its USD reserves to $1.4 billion at the end of June by selling MSTR shares, the total accumulated debt on its balance sheet remains as high as $8.2 billion. This 'debt-fueled coin buying' model exerts immense pressure on cash flows during bear or consolidating markets, leaving investors skeptical about its continued accumulation of Bitcoin.

Most concerning is that if Bitcoin prices spiral out of control, Strategy's stock price will fall exponentially, which in turn could trigger a plunge in BTC, trapping it in a death spiral that could affect all crypto investors. Consequently, figures within the crypto industry have offered advice to Strategy. Among them, the former Chief Strategy Officer of Blockstream proposed a $1.5 billion over-the-counter (OTC) transaction with Bitcoin Standard Treasury Company (BSTR) to boost its cash reserves, while other analysts have suggested that the company stop buying Bitcoin.

It is worth noting that Strategy's future destiny is completely tied to Bitcoin. Therefore, the key to turning the tide for Strategy lies in a rising Bitcoin price. If Bitcoin prices continue to decline, the aforementioned proposals will be of no avail; at best, they will merely cushion the decline of Strategy's stock price without changing the ultimate grim outcome.

MSTR's daily chart still shows a clear downward structure. The recent rebound failed in the $175-$200 range, subsequently breaking below the $125-$150 consolidation area. The price is currently near $85-$90, with the next support zone at $65-$75. If Bitcoin prices can hold the $60,000 level, MSTR's price is expected to rebound to around $125 in the short term.

MSTR price chart, Source: TradingView