Strategy Stock Hits Two-Year Low Amid Bitcoin Premium Erosion

Strategy Inc's stock price has hit a two-year low of $82.31 after plummeting 46% in the past 30 days.

The company's preferred stock, STRC, reached a record low of $71.40 on Friday, nearly 26% below its par value of $100.

Strategy's enterprise mNAV briefly fell below 1.0, indicating that the market values the company at less than its bitcoin holdings.

The root cause of Strategy's financial woes lies in its high-dividend preferred stock issued to fund bitcoin purchases, which has led to quadrupled annual dividend obligations reaching $1.2 billion.