[DigitalToday reporter Jinju Hong] Strategy, led by Michael Saylor, saw its stock and preferred shares plunge together as bitcoin weakness coincided with a securities investigation issue. The market is assessing that Strategy, the world’s largest corporate holder of bitcoin, is facing a full-scale test of its fundraising model.

On June 25 (local time), Bitcoin Magazine and Decrypt reported that Strategy’s common stock (MSTR) fell more than 9 percent intraday, sliding to its lowest level since March 2024. It closed at $94.13, down 9.35 percent from the previous day, and hit $92.28 during the session to set a new 52-week low. Preferred share STRC also fell 7.41 percent to close at $80.84, well below its $100 par value.

The decline in the stock was concentrated over a short period. MSTR was above $117 early this week, but fell as low as $85 intraday. It has fallen about 30 percent over the past 5 trading days and about 36 percent over the past month. The drop far exceeds bitcoin’s decline of 18.5 percent over the same period.

The negative news was not limited to bitcoin’s price fall. Rosen Law Firm said it is investigating potential securities fraud claims against Strategy. The firm argued the company may have provided business information to investors that could be materially misleading. The probe covers not only MSTR but also major securities issued by Strategy, including STRF, STRC, STRK and STRD.

The market is focusing in particular on the preferred-share structure as the biggest risk factor. STRC is a key dividend-paying preferred share that Strategy has used to raise funds for additional bitcoin purchases. With the current price well below par, concern is growing that fundraising in the same way could become increasingly difficult.

Dividend burdens are also rising quickly. Strategy expanded STRC issuance over the past 6 months, lifting its annual dividend obligation fourfold to about $1.2 billion from about $300 million in early 2026. Over the same period, cash holdings fell about 38 percent, prompting an assessment that funding costs have increased and the cash buffer has weakened.

The bitcoin holding strategy is also adding to the burden. Strategy is the world’s largest corporate holder of bitcoin, with about 847,363 BTC. As bitcoin recently fell below $60,000 intraday, most of the holdings bought since 2024 have moved into an unrealised loss zone. Unrealised losses are estimated at about $10.6 billion.

Opinions are also divided on possible responses inside and outside the market. On-chain analytics firm CryptoQuant recommended that Strategy temporarily halt additional bitcoin purchases, rebuild cash to about $2.8 billion, and then resume accumulation. Some argue Saylor should sell a large amount of bitcoin to stabilise the financial structure. Hedge fund manager Travis Kling also raised the possibility that some large bitcoin holders may be inducing price declines to shake Strategy’s capital structure.

Strategy is already showing signs of slowing its purchase pace. Last week it spent about $35 million to buy only 520 BTC. Of the $335.5 million it recently raised, it secured $300 million in cash, increasing cash holdings to about $1.4 billion. Even after raising cash, STRC weakness persisted, leading the market to view simple liquidity 확보 as insufficient to ease structural concerns.

Key points to watch are a recovery in bitcoin prices and the direction of the securities probe. The market sees whether the investigation leads to an actual lawsuit, and whether Strategy can continue its bitcoin buying strategy based on preferred-share issuance, as key variables that will determine the company’s share price and fundraising ability.