MSTR and STRC Crash: Will Strategy Be Forced to Sell Bitcoin?
Key Takeaways
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Strategy holds 846,842 BTC worth roughly $53 billion at current prices
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MSTR closed at $112.53 on June 19, down over 70% from its November 2024 peak near $400
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STRC printed its lowest daily candle ever at $88.59, designed to trade near $100
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$BTC is at $62,605, below all four major EMAs, with RSI at 34.40
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The Bitcoin treasury giant sold 32 BTC on June 1 — its first BTC sale since 2022 — to fund STRC dividends
MSTR Falls to $112 as Strategy's Funding Model Comes Under Pressure
Strategy's common stock closed at $112.53 on June 19, down 3.46% on the session, after opening at $117.64. The 20-day EMA sits at $133.21, and RSI has fallen to 34.04, near oversold territory.
The concern goes beyond daily price action. Strategy has funded its BTC accumulation through convertible notes and repeated preferred stock issuances.
As MSTR declines, that capital-raising engine weakens. Peter Schiff has argued the gap between MSTR's share price and its per-share $BTC value is widening sharply, calling the overall structure a "financial house of cards."
Has Strategy Ever Sold Bitcoin?
Yes. Strategy sold 32 Bitcoin between May 26 and May 31, 2026, for approximately $2.5 million — its first reported $BTC sale in years — with proceeds used to fund distributions on its STRC perpetual preferred stock.
While the 32 Bitcoins sold represent a negligible fraction of Strategy's 843,706 total holdings at the time, the transaction sent shockwaves through markets, with Strategy's shares falling 9.3% on June 2 alone and BTC declining 6.1% following the disclosure.
Saylor had previously said it was "not unlikely" that Strategy could sell Bitcoin in 2026, adding that an objective of the company is to maximize BTC per share over the long term.
What Could Force Strategy Into Larger Bitcoin Sales?
Voluntary sales are one thing. Structurally forced selling is a separate risk.
Strategy carries five series of preferred stock with combined annual dividend obligations of $750 million to $800 million, and its $900 million U.S. dollar reserve has declined from $2.25 billion at the start of 2026.
When cash reserves thin out, $BTC sales become a direct mechanism to meet those obligations — as the June 1 sale demonstrated.
The second trigger is STRC's yield. When preferred stock yields rise high enough, the capital markets strategy relied on for fresh fundraising becomes inaccessible.
No new raises means no new BTC purchases and less flexibility to service existing debt.
The company also holds leveraged ETFs like MSTY, MSTU, and MSTX built on MSTR common stock.
These amplify daily price moves in MSTR, meaning sustained MSTR declines generate outsized losses in these funds, prompting investor redemptions, which in turn put additional selling pressure on MSTR shares.
Is Strategy Facing a Margin Call?
The company does not typically pledge BTC directly as collateral for its debt. Convertible notes and preferred stock are issued against the company itself.
However, analyst Willy Woo has noted that the firm faces approximately $1.01 billion in debt maturing on September 15, 2027, and to avoid selling Bitcoin for repayment, MSTR stock must trade above $183.19 — a level that roughly corresponds to a Bitcoin price around $91,502 at an mNAV of 1.
At $112.53, MSTR is well below that threshold.
What Happens to Bitcoin If Strategy Sells More?
At $62,605, Strategy's 846,842 Bitcoin is worth approximately $53 billion. Investors watching the company closely understand that any forced liquidation of its holdings would carry severe consequences for the broader cryptocurrency market.
Experts speaking have downplayed the likelihood of a market shock from any potential company sale, with one analyst arguing that responsible treasury management could actually strengthen institutional confidence.
$BTC is currently below all four major EMAs: the 20-day at $65,727, 50-day at $69,672, 100-day at $72,576, and 200-day at $78,106. RSI sits at 34.40.
Key Levels to Watch
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Support: $62,000, then $59,000–$60,000
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Resistance: $65,727 (20 EMA), then $69,672 (50 EMA)
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Major resistance: $72,576 (100 EMA) and $78,106 (200 EMA)
A daily close back above $65,727 would be the first signal that selling pressure from the STRC situation has eased.
Disclaimer
This article is for informational and educational purposes only. It does not constitute financial advice, investment advice, trading advice, or any other form of regulated advice. Always conduct your own independent research and consult a qualified and licensed financial advisor before making any investment decisions.
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