Bitcoin Falls Below $60,000 and the Company That Bet on It Is Getting Complicated

 Crypto.King
 
  Crypto.King
 
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•  26 Jun 2026
 

$MSTR Strategy shares lost nearly 35% over seven trading days, the sharpest decline since late 2022, while Bitcoin fell below $60,000. The problem is no longer only the price of the coin, but the companys ability to keep funding Bitcoin purchases without diluting shareholders.

The decline in Bitcoin is now becoming a major test for the company that turned itself into a public leveraged play on the coin. Strategy, formerly MicroStrategy, is heading toward its sharpest losing streak since late 2022, after losing nearly 35% over seven trading days. The decline comes as Bitcoin trades below $60,000, after touching an intraday low this week of $58,065, the lowest level since September 2024.

Strategy has long stopped being a regular software company. Under Michael Saylor, it became a company whose core activity is holding Bitcoin, raising capital, and making additional purchases of the coin. For a long period, that worked very well: the companys stock became one of the popular vehicles for investors who wanted leveraged exposure to Bitcoin through the equity market, and the rise in the coin created a double effect, both on the value of assets on the balance sheet and on the ability to raise more money.

Now that same mechanism is working in reverse. When Bitcoin falls, the value of the holding erodes, the stock falls, and the cost of raising capital rises. In recent months, Strategy has relied more and more on preferred shares to finance Bitcoin purchases and manage its capital structure. The main instrument is STRC, a preferred share called Stretch, designed to trade around a $100 par value and pay a high annual dividend of 11.5%.

The problem is that STRC is already trading deep below par value. This week, it fell to a low of about $73.6. When a preferred share like this trades around $100 or above it, the company can issue more units and raise capital relatively comfortably. When it trades around $74, an additional offering becomes much more expensive, because the market demands a higher yield as compensation for the risk. In simple terms: the money raising machine that funded Bitcoin purchases is starting to jam.

This is an important point for investors in Strategy shares. The company still holds an enormous amount of Bitcoin, and it can still benefit from any sharp recovery in the coin. But its model depends on access to the capital markets. If the preferred share is weak, and if the common stock falls, the company can keep raising capital through sales of common shares, but that dilutes existing shareholders. This week, it already reported that it used proceeds from common stock sales to buy Bitcoin and strengthen cash reserves.

That move solves an immediate need, but it carries a cost. Common shareholders receive a smaller relative share of the company, and the money is used in part to fund dividend obligations to preferred shareholders. The more the stock falls, the more shares must be sold to raise the same amount of money. This is exactly the dynamic worrying the market: a decline in Bitcoin hurts the stock, a decline in the stock makes capital raising more expensive, and stock issuance dilutes investors.

The drop below $60,000 is not happening in a vacuum. Technology stocks are falling, chip stocks are correcting, and Apple is sending a less comfortable message to the market as it raises Mac and iPad prices because of memory and storage costs. The concern is that the AI boom is making the entire computing supply chain more expensive, and that consumers will struggle to absorb the prices. When risk assets fall together, crypto usually falls as well, and often by more.

Bitcoin is more than 50% below the high recorded above $126,000 in October, and the fall below $60,000 brings back the feeling of crypto winter. Crypto is already in negative momentum around the $60,000 levels, and Strategys weakness adds another layer: this time, the decline is not only in the coins, but also in the companies that built a complex financial mechanism around them.

For Strategy, the big question is whether Bitcoin stabilizes. A recovery in the coin could quickly improve sentiment, lift the value of the holding, and restore interest in the stock. But a continued decline below $60,000 would increase pressure on STRC, raise the yield the market demands from the preferred shares, and strengthen concern about further dilution.

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