Strategy Plummets to Two-Year Low Amid Bitcoin Slump

Strategy (NASDAQ: MSTR) shares plummeted over 10% in one day, dropping to $92 and hitting a two-year low. This sudden decline follows Bitcoin's slide below $60,000, with a cascade of liquidations exceeding one billion dollars and an alert from on-chain analytics firm CryptoQuant.

CryptoQuant warns that Strategy has dangerously overextended its balance sheet, with cash reserves rapidly depleting and dividend obligations quadrupling in less than six months. The model built by Michael Saylor is turning against him, as the company's financial mechanism begins to seize up.

The correlation between MSTR and Bitcoin prices remains near-total, both on the way up and down. Strategy holds 847,363 bitcoins acquired at an average price of $75,680 per unit, with unrealized losses now standing at $10.6 billion due to the current market value of $59,000.