MSTR shares have lost around 41% of their value in June, marking the company's worst monthly performance since 2022 and putting it on track to record its eleventh losing month in the last twelve. According to latest reports, the stock traded as low as nearly $80 on Friday before rallying more than 12% on Monday following the company's announcement of its new capital management framework. The decline represents a significant deterioration from the stock's all-time high of $540 per share reached in November 2024, with the sustained decline beginning in July 2025 coinciding with the debut of its perpetual preferred security, STRC. Since STRC's IPO, bitcoin has fallen 20% in June and is on track to post its third consecutive negative quarter, adding pressure to the company's Bitcoin-heavy investment strategy.
MicroStrategy has approved a board-authorized Bitcoin monetization program as part of a new Digital Credit Capital Framework, marking the first time the company has formally outlined how it could sell portions of its Bitcoin holdings to support shareholder returns and strengthen its balance sheet. According to the latest Form 8-K filing with the U.S. Securities and Exchange Commission, the program authorizes BTC sales for specific purposes including $1.25 billion for building the USD Reserve, which funds preferred stock dividends and interest payments, and up to $1 billion each for Digital Credit Securities repurchases and Class A common stock buybacks. The framework allows Strategy to monetize Bitcoin to increase its U.S. dollar reserve by up to $1.25 billion and maintain liquidity for preferred dividend and interest payments, with any Bitcoin sales outside these defined purposes requiring additional board approval. MSTR shares are up 3.2% in pre-market trading and another 2.69% in after-hours trading following the announcement, while bitcoin continues to trade below $60,000.
The new Digital Credit Capital Framework includes several key enhancements to address cash flow pressures. Strategy has increased the dividend on its preferred stock STRC to 12% from 11.5%, while adopting a formal USD Reserve policy and requiring sufficient cash reserves to cover at least 12 months of preferred stock dividends and interest obligations. The company disclosed that as of the latest filing, it has $2.55 billion in dedicated cash reserves, enough to cover roughly 17.4 months of preferred dividends and interest payments. Under the new policy, the reserve can only be used for those obligations and must remain above 12 months of coverage unless the board approves otherwise. Executive chairman Michael Saylor said the existing reserve, combined with the newly authorized Bitcoin monetization capacity, provides about $3.8 billion of dividend coverage, equivalent to nearly 26 months. The amended terms taking effect June 30 will shift STRC to twice-monthly dividends, potentially intensifying cash flow pressures. President and CEO Phong Le said Strategy is evolving beyond raising capital solely to acquire Bitcoin toward actively managing its capital structure.
According to latest reports, Strategy is now facing a $14 billion paper loss on its Bitcoin holdings as the company's 847,363 BTC stash sits underwater with Bitcoin trading below $60,086. The company acquired its Bitcoin reserves for $64.1 billion but as of the latest filing, those holdings are valued at only $50.9 billion, representing a significant unrealized loss. Despite the substantial paper loss, Strategy has continued its aggressive Bitcoin buying strategy, adding 3,625 BTC net in June after buying 3,657 BTC and selling 32 BTC earlier in the month. The company's average purchase price of $75,651 per coin now sits far above current spot prices, amplifying the impact of Bitcoin's decline from its October 2025 all-time high above $126,000. If BTC trades in the range of $62,000 to $64,000, rough estimates suggest unrealized losses of about $9.5 billion to $11.5 billion, though paper losses themselves do not necessarily create a liquidity crisis.
According to AMBCrypto, MSTR stock fell below $100 for the first time since March 2024, trading at $82.31 following a 3.54% decline the day before, while STRC was trading at $74.870 at the time of writing. The company's recent market activity includes selling 32 BTC for about $2.5 million between May 26 and May 31, marking its first reported BTC sale since December 2022. This small sale drew attention because it raised doubts about whether the firm may need to sell more BTC if preferred stock costs keep rising. Recent reports indicate that Strategy later bought 520 BTC for about $34.9 million, bringing total holdings to 847,363 BTC, while the company also raised cash reserves by about $1.15 billion through the sale of 12.67 million MSTR shares. The company has slowed its Bitcoin buying sharply and routed fresh stock-raise proceeds into its cash reserve instead of into more Bitcoin. The announcement accompanied Strategy's latest Bitcoin holdings update, which showed the company made no Bitcoin purchases during the reporting period.
