Why MSTR Stock Price is Not Rising?

Strategy (NASDAQ: MSTR) stock price dropped by 3.45% on June 26 to close trading at $82. That drop failed to mirror the gains seen with other crypto stocks because Coinbase (NASDAQ: COIN) shares rose by 4.59% on June 26 to close trading at $149, and Circle (NYSE: CRCL) rose by 6.95% to close trading at $73.

The gains made by Coinbase and Circle shares, while MSTR shares drop, have drawn attention to three factors: Bitcoin, STRC, and legal overhang, that are preventing MSTR stock price from rising.

Bitcoin Price Decline is Weighing on Strategy’s Balance Sheet

Strategy is the biggest public holder of Bitcoin with its stash of 847,363 coins, which means that if the price of Bitcoin is dropping like it is doing now, the company’s balance sheet will feel the pinch, pushing MSTR stock price lower.

Data from Saylor Tracker shows that the 847,363 Bitcoin that Strategy holds has an unrealized loss of $13 billion, and this is the amount of loss the company would take today if it sold all of its Bitcoin.

Between 2022 and April 2026, this unrealized loss was just a figure on the balance sheet that investors rarely paid attention to because Michael Saylor, Strategy’s executive chairman, had sworn never to sell Bitcoin.

But after Strategy sold 32 BTC in May 2026, the sentiment shifted as investors reassessed what would happen to MSTR stock price if Strategy sells all its Bitcoin at a $13 billion loss.

In 2025, Strategy also made a filing with the SEC where it said that Strategy will consider selling Bitcoin if the mNAV drops below 1.22x.

This mNAV has since dropped to 0.999, and Strategy might start selling Bitcoin like it had said it would in the 2025 SEC filing,

STRC’s 29% Crash Below Par is Fuelling a Bearish Sentiment

MSTR stock price is also failing to rise because of the STRC preferred stock that has dropped by 29% below its par value of $100.

Strategy uses the money that it raises from issuing the STRC stock to buy more Bitcoin.

But when STRC is down by 29%, it becomes less attractive to investors, and that means Strategy cannot raise as much money as it did when STRC was at $100.

Ripple CEO Brad Garlinghouse has weighed in on STRC’s drop, saying that if this preferred stock collapses, the negative implication will affect the entire crypto market.

Rosen Law Firm Says It is Investigating Securities Claims Around Strategy

The Rosen law firm has asked any investor who feels that Strategy misled them into buying MSTR or STRC using wrong information to come forward and help in an investigation that could lead to a class action lawsuit.

MSTR stock price has dropped from $94 to $82 since Rosen released its statement.

Schiff had also warned that Strategy could face a lawsuit if MSTR and STRC stock prices keep dropping and investors make more losses than they had anticipated when they first bought the stocks.

But Saylor has denied any wrongdoing, and in a recent X post, he said that Strategy “will continue to execute with transparency and resolve.”

MSTR Stock Price Outlook

MSTR stock price dropped below $100 on June 24 for the first time since 2024 to close trading at $82 on June 26.

The volume bars that have been red since May 11 suggest that selling pressure is pulling the price of the stock down.

The RSI reading of 28 also suggests that bears have a good grip on MSTR as the price of Bitcoin and STRC fall.

The AO bars that are red and on the negative side further show that the momentum is favoring bears, and the MSTR stock price might drop to the February 2024 low of $65.20.