MicroStrategy (MSTR) is facing its most severe financial strain in years, according to multiple analyses and market data. On June 24, prominent crypto analyst K A L E O warned that the company’s market net asset value (mNAV) could drop below 1, a scenario that would gravely impair its ability to raise capital for retiring convertible debt and sustaining dividends. The tweet rapidly gained traction with 146 likes and 5 retweets, underscoring trader anxiety about whether MicroStrategy might be forced to liquidate assets — including its massive Bitcoin stack — to cover an estimated $9–10 billion in near-term obligations.
The following day, MSTR shares fell below $100 for the first time in two years, closing at $94.13 after a 9.26% single-day drop on volume of 39 million shares, roughly four times the average. This marks an 81% drawdown from the stock’s peak, erasing roughly $153 billion in market value. The sell-off was compounded by a broader crypto downturn: Bitcoin traded at $60,770, down 3.03% in 24 hours and over 20% for the month, while Ether (ETH) fell 2.90% to $1,617 and Solana (SOL) dropped 2.82% to $67.56.
MicroStrategy held 847,363 BTC as of June 21, worth about $53 billion at current prices. At Bitcoin’s September 2025 peak near $93,000, that position was worth roughly $78.8 billion — a $25 billion evaporation that has destroyed the equity cushion propping up the company’s leveraged swap structure. The preferred stock (STRC), which is integral to the Bitcoin-linked perpetual preferred model, now trades near $84, well below its $100 par value, straining the funding architecture.
Julio Moreno, head of research at CryptoQuant, urged MicroStrategy in a Tuesday report to pause Bitcoin purchases and rebuild cash reserves. He estimates annualized dividend obligations have climbed to roughly $1.2 billion, cutting dividend coverage from over seven years to about 14 months. To restore a 24-month coverage buffer, the company would need about $2.8 billion in reserves, versus the $1.4 billion currently held. The combination of a falling mNAV, depressed stock price, and dwindling cash reserves has intensified speculation that MicroStrategy may have to offload a portion of its Bitcoin holdings to remain solvent.
