Why Strategy, Inc. Plunged in June
Shares of Strategy, Inc. (NASDAQ: MSTR) plunged 45.4% in June, according to data from S&P Global Market Intelligence.
Strategy Inc. is the brainchild of Michael Saylor, who transformed his software company into what is now essentially a Bitcoin (CRYPTO: BTC) treasury company. Strategy is also a slightly levered bet on Bitcoin, given that the company has raised additional debt to buy more Bitcoin. While Strategy isn't inordinately levered, with about $17 billion in debt and perpetual preferred stock against $51.6 billion in Bitcoin as of March 31, the company does pay a high double-digit yield on those preferred shares, paid semi-monthly.
Strategy has come under pressure this year, as the price of Bitcoin has declined. This led to some maneuvering by the company last month to pay the preferred stock dividends and service its debt. That spurred Strategy stock to fall more than the price of Bitcoin during June.
Source Fool.com
