Strategy (MSTR) Stock Drops as Insider Sells $9M and STRC Weakens

TLDR

• MSTR fell nearly 6% to around $109 after its preferred stock STRC hit a record low of $89
• STRC trading below $100 par value has paused Strategy’s ability to issue new stock to buy bitcoin
• Strategy sold 32 bitcoin in May — its first BTC sale since 2022 — to fund STRC dividends
• Director Jarrod Patten sold ~$9M in MSTR over three months; other executives sold earlier in 2026
• Analysts at Bernstein, TD Cowen, Citigroup, and BTIG kept bullish ratings with targets from $250–$450

Strategy (MSTR) stock dropped around 6% Thursday, trading near $109, as a cascade of pressure hit the company from multiple directions — falling preferred stock prices, insider selling, and a cooler bitcoin environment following the Federal Reserve’s latest meeting.

Strategy Inc, MSTR

The immediate trigger was STRC, Strategy’s Stretch preferred stock, which fell to a record low of $89. That matters because STRC now trades below its $100 par value, which has forced Strategy to pause its at-the-market program — the main mechanism it uses to raise fresh cash to buy bitcoin.

Without that funding channel open, Strategy’s core bitcoin accumulation strategy is effectively stalled.

First Bitcoin Sale Since 2022

In late May, Strategy sold 32 bitcoin for approximately $2.5 million to cover STRC dividend payments. It was the first time the company had sold any bitcoin since it began accumulating in 2022.

Chairman Michael Saylor had long maintained a no-sell stance. The transaction was a notable departure from that playbook, even if analysts at Benchmark and TD Cowen pushed back on fears of a broader collapse.

Adding to the competitive pressure, Strive’s rival SATA preferred stock trades above $99 with a 13.69% yield, pulling income-focused investors toward an alternative.

Market maker QCP estimates Strategy has roughly 7.5 months of liquidity left to fund preferred dividend payments. QCP noted the company could eventually face a choice between raising more capital, further diluting stockholders, or selling more bitcoin.

Strategy recently repurchased nearly $1.5 billion of convertible notes due in 2029 while raising around $200 million through MSTR stock sales — part of which was used to buy another $100 million worth of bitcoin.

Insider Selling Adds to Pressure

Director Jarrod Patten exercised options on 1,500 Class A shares at a strike price of $18.236 and sold them at roughly $134, generating around $200K. Over the past three months, Patten has sold 55,750 MSTR shares for total proceeds approaching $9 million.

He still holds 28,406 Class A shares and 44,250 unexercised director options.

Earlier in 2026, CEO Phong Le, CFO Andrew Kang, and former EVP Wei-Ming Shao also sold millions in MSTR stock.

The Fed voted 12-0 on June 17 to hold rates at 3.50%–3.75%, but the dot plot showed nine of 18 FOMC members now expect at least one rate hike before year-end 2026. That hawkish tilt weighed on bitcoin and crypto-linked stocks even as broader equities rose.

Bitcoin traded near $63,850 at press time, down about 2% in 24 hours. At that price, Strategy’s portfolio carries a paper loss of roughly $11,658 per coin against its average acquisition cost.

MSTR closed 5.09% lower at $116.56 on Wednesday, then fell another 2.1% to $114.04 Thursday morning. The stock is now down roughly 31% over the past month.

Despite all of this, Bernstein reiterated a buy rating and $450 price target. TD Cowen holds at $350, Citigroup at $260, and BTIG at $250.

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