Strategy (MSTR) stock is set to end the month around 41% lower, its worst monthly performance since 2022, with one trading day remaining.
MSTR is on course to mark its 11th negative month out of the last 12. Shares traded as low as nearly $80 on Friday before rallying more than 12% on Monday following the company’s announcement of its new capital management framework.
The stock reached an all time high of $540 per share in November 2024, before a sustained decline began the following July, coinciding with the debut of its perpetual preferred security, STRC.
STRC sits above the common stock in the capital structure and so offered investors a lower volatility alternative to owning MSTR shares. At the same time, the need for continued issuance of common stock to help fund STRC’s dividend obligations increased dilution concerns, contributing to the stock’s prolonged underperformance.
Since STRC’s IPO, bitcoin has fallen by almost 50%, while MSTR has declined by roughly 77%.
Meanwhile, bitcoin is on track to post its third consecutive negative quarter and has fallen 20% in June.