Strategy (MSTR) stock is expected to finish the month down about 41%, its worst monthly performance since 2022, with one trading day remaining.
MSTR is on track to mark its eleventh negative month in the last twelve. Shares were trading near $80 on Friday before rebounding more than 12% on Monday following the company’s announcement of its new capital management framework.
The stock hit an all-time high of $540 per share in November 2024, before a sustained decline began the following July, coinciding with the launch of its perpetual preferred security, STRC.
STRC sits above common stock in the capital structure and thus provides investors with a lower volatility alternative to owning MSTR stock. At the same time, the need to continue issuing common stock to help fund STRC’s dividend obligations increased dilution concerns, contributing to the stock’s prolonged underperformance.
Since STRC’s IPO, Bitcoin fell by almost 50%, while the MSTR declined by around 77%.
Meanwhile, bitcoin is on track to post its third consecutive negative quarter and fell 20% in June.
