MSTR Stock Crashes 13% as Bitcoin Sale Breaks “Never Sell” Promise, June 05

Strategy Inc (MSTR) stock fell 13% from $148.47 on June 1 to $126.55 on June 3, then recovered 1.5% to $128.46 on June 4. The drop followed the company’s announcement that it sold 32 Bitcoin between May 26 and 31 for $2.5 million. This marked the first Bitcoin sale in years, breaking CEO Michael Saylor’s public commitment to never sell. The move signals cash flow pressure as the company faces $1.7 billion in annual debt obligations.

Why Strategy Sold Bitcoin After Years of Buying

Strategy holds 843,706 Bitcoin worth approximately $54 billion at current prices, making it the largest corporate Bitcoin holder. However, the company carries $6.7 billion in convertible bonds and $15.5 billion in perpetual preferred stock. Annual interest and dividend payments total $1.7 billion, while the software business generates only $500 million in revenue. The $2.5 million Bitcoin sale represents just 0.004% of holdings but signals the company may need to liquidate more BTC to cover obligations. CEO Phong Le stated in May that the company would sell Bitcoin when in its best interest, reversing Saylor’s earlier “never sell” stance.

Stock Decline Reflects Market Concerns

MSTR fell 7.6% to $116.88 as of June 5, down 29.6% over the past month. Meyka rates the stock a C+ with a Sell recommendation, citing weak fundamentals across profitability and valuation metrics. The RSI indicator at 32.89 shows oversold conditions, while the CCI at -152.87 signals extreme pessimism. Analysts maintain 18 Buy ratings against 2 Holds and 1 Sell, but the stock’s decline reflects growing doubt about the company’s financial model. With Meyka rating the stock a C+ and analyst consensus still leaning Buy, the data points to significant downside risk from current levels.

Bitcoin Market Weakness Compounds the Pressure

Bitcoin fell from $73,800 on June 1 to $64,092.60 by June 4, a 13% drop in three days. The crypto market is on pace for its worst week since July 2024. Strategy’s STRC preferred stock fell below $95 par value on June 3, triggering a mandatory 0.5% dividend increase costing $53 million annually. This de-anchoring signals weakening demand for the company’s preferred shares and raises questions about its ability to fund future Bitcoin purchases. Grayscale noted that Strategy’s capacity to accumulate more Bitcoin is now limited at current stock prices.

What This Means for Investors

Strategy’s first Bitcoin sale in years suggests the company prioritizes debt management over accumulation. With $10 billion in unrealized losses on its Bitcoin holdings and mounting debt service costs, further sales appear likely. On Polymarket, traders estimate a 90% probability that Strategy will sell more Bitcoin by year-end. The stock trades at 0.96 times book value, well below its historical premium, reflecting investor skepticism about the business model.

Final Thoughts

Strategy’s Bitcoin sale breaks a three-year promise and signals cash flow stress. The stock’s 29.6% monthly decline and Meyka’s C+ Sell rating suggest limited recovery potential near-term. Investors should expect more Bitcoin liquidations as debt obligations mount.

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The content shared by Meyka AI PTY LTD is solely for research and informational purposes.  Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.