Here’s Why Strategy Shares Are Down 31% in the Last Month

Strategy Inc. (NASDAQ: MSTR) has tumbled 31.9% over the past month, making it the worst-performing stock in the NASDAQ 100 and capping a bruising stretch for the Bitcoin-centric firm formerly known as MicroStrategy.

Shares currently trade near $123.97, down sharply from levels above $170 a month ago, as a confluence of pressures converged on the company. The stock is down more than 67% in the last 12 months.

A steep single-day blow came when Strategy confirmed it had sold 32 Bitcoin for approximately $2.5 million — its first disposal of the cryptocurrency since December 2022 — to raise cash for preferred stock dividend payments.

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The disclosure landed with particular force because co-founder and executive chairman Michael Saylor had repeatedly and publicly vowed never to sell Bitcoin, positioning the company’s hoard as an inviolable corporate treasury reserve.

Investors who bought into that narrative found the covenant broken by the mundane reality of dividend obligations, and shares dropped more than 5% on the day of the announcement.

Further weighing on sentiment, Strategy has been aggressively issuing new shares to fund continued Bitcoin purchases, diluting per-share Bitcoin exposure even as the cryptocurrency itself softened — Bitcoin briefly slid to a two-week low near $76,000 during the period. Short sellers have seized on the vulnerability, building large put-option positions against the stock.

Some relief came from a $1.5 billion convertible-note buyback, signalling a measure of balance-sheet discipline, but the move was insufficient to arrest the broader selloff.

Strategy still holds well over 840,000 Bitcoin on its books, and Saylor remains bullish on the long-term thesis. For now, however, the market is pricing in a painful gap between that vision and the company’s immediate financial mechanics.