Bitcoin's Plunge Brings Strategy's Holdings to Near Breakeven, but Key Test Lies 18 Months Ahead

Markets Share Share this article Copy link X icon X (Twitter) LinkedIn Facebook Email Bitcoin's Plunge Brings Strategy's Holdings to Near Breakeven, but Key Test Lies 18 Months Ahead Michael Saylor's company's balance sheet isn't at imminent risk of collapse, but further capital-raising efforts could surely be hindered unless conditions improve. By James Van Straten | Edited by Stephen Alpher Nov 22, 2025, 9:00 p.m. Strategy Executive Chairman Michael Saylor (Danny Nelson, modified by CoinDesk) What to know : Despite volatility, Strategy's balance sheet faces no immediate stress, and the main pressure point sits about 18 months away when the first put option on the company’s convertible notes becomes exercisable. Performance has diverged across the preferreds, with the STRF and STRC series trading above issue, while STRK and STRD sit meaningfully below their launch prices. Management has multiple options should the bitcoin market remain under stress, but use of any is likely to hinder future capital-raising efforts. Liquidation calls from the sidelines are growing louder for Strategy (MSTR) as bitcoin tumbles and the company's common stock has plunged nearly 70% from last year's peak, calling into question — for some — the firm's ability to continue to meet its obligations. Throughout 2025, Strategy has relied on perpetual preferred stock as its primary financing vehicle for bitcoin purchases, while mostly using at-the-market (ATM) common share issuance mainly to cover its preferred dividend obligations. STORY CONTINUES BELOW Don't miss another story. Subscribe to the Crypto Daybook Americas Newsletter today . See all newsletters Sign me up By signing up, you will receive emails about CoinDesk products and you agree to our terms of use and privacy policy . Led by Executive Chairman Michael Saylor, the company issued four U.S.-listed preferred series during the year: Strike (STRK) pays an 8% fixed dividend and is convertible into common stock at $1,000 per share. Strife (STRF) carries a 10% fixed non cumulative dividend and ranks as the most senior of the preferreds. STRD $ 0.05493 also pays 10% but on cumulative terms and sits junior in the structure. Stretch (STRC), the newest series, debuted in August at $90 with a 10.5% fixed cumulative dividend and now trades just above its offer price. As of Nov. 21 STRK trades near $73, an 11.1% current yield, with a 10% decline since issuance. STRD has been the weakest performer, falling to about $66 for a 15.2% yield and a 22% total return loss. STRF is the only series still above issue, trading around $94 and delivering roughly an 11% gain, reflecting its senior standing. Nearly back to breakeven Bitcoin's plunge over the past weeks has market participants focusing on the roughly $74,400 level at which Strategy — after more than five years of accumulation — would actually be in the red on its bitcoin holdings. While that's surely an important level for talking points, a decline below $74,400 surely does not mean the company would face a margin call or need to engage in forced sales of any part of its BTC stack. The nearest structural pressure point is almost two years out on September 15 2027, when holders of the $1 billion 0.625% convertible senior notes receive their first put option. The notes were priced when MSTR traded at $130.85 and carry a conversion price of $183.19. With the stock now at about $168, holders would be unlikely to convert and would probably seek cash repayment, potentially requiring Strategy to raise or liquidate assets unless the share price rises meaningfully before 2027. Multiple levers remain Even if the MSTR share valuation premium to bitcoin holdings (the mNAV) collapses further and maybe even goes to a discount, Strategy still has a clear path to cover the annual preferred dividend bill. The company can continue to issue common shares via ATM offerings, or sell small slices of its bitcoin treasury, or even pay dividends in-kind with newly issued stock. This isn't to say all is well. While preferred dividends are not at immediate risk, use of any of the above options would surely dent investor confidence in Strategy even further, likely putting to an end — for at least a temporary time — any efforts to raise additional capital for more bitcoin purchases. BTC Treasuries Theme Month More For You Protocol Research: GoPlus Security By CoinDesk Research Nov 14, 2025 Commissioned by GoPlus What to know : As of October 2025, GoPlus has generated $4.7M in total revenue across its product lines. The GoPlus App is the primary revenue driver, contributing $2.5M (approx. 53%), followed by the SafeToken Protocol at $1.7M. GoPlus Intelligence's Token Security API averaged 717 million monthly calls year-to-date in 2025 , with a peak of nearly 1 billion calls in February 2025. Total blockchain-level requests, including transaction simulations, averaged an additional 350 million per month. Since its January 2025 launch , the $GPS token has registered over $5B in total spot volume and $10B in derivatives volume in 2025. Monthly spot volume peaked in March 2025 at over $1.1B , while derivatives volume peaked the same month at over $4B. View Full Report More For You XRP Drops With Market as Bitcoin Weakness Pulls Altcoins Into Oversold Territory By Shaurya Malwa , CD Analytics 1 hour ago Technical indicators suggest oversold conditions, but a break above $1.96 is needed to reverse the current downward trend. What to know : Whale wallets sold nearly 200 million XRP, causing significant supply pressure and a drop in price. XRP's price fell to its lowest in three sessions, with a notable increase in trading volume indicating institutional selling. Technical indicators suggest oversold conditions, but a break above $1.96 is needed to reverse the current downward trend. Read full story Latest Crypto News XRP Drops With Market as Bitcoin Weakness Pulls Altcoins Into Oversold Territory 1 hour ago As DATs Face Pressure, Institutions Could Soon Look to BTCFi for Their Next Strategic Shift 2 hours ago Coinbase to Add 24/7 Trading for SHIB, Bitcoin Cash, Dogecoin, and Others 2 hours ago Hobbyist Miner Beats "1 in 180 Million Odds" to Win $265K Bitcoin Block Using Just One Old ASIC 2 hours ago Is Strategy Stock the Preferred Hedge Against Crypto Losses? Tom Lee Thinks So 4 hours ago 'Liquidity Crisis': $12B in DeFi Liquidity Sits Idle as 95% of Capital Goes Unused 4 hours ago Top Stories Hobbyist Miner Beats "1 in 180 Million Odds" to Win $265K Bitcoin Block Using Just One Old ASIC 2 hours ago Is Strategy Stock the Preferred Hedge Against Crypto Losses? Tom Lee Thinks So 4 hours ago Turning ‘$11K to Half a Billion Dollars From Trading Memecoins’: Tales From a Crypto Wealth Manager 6 hours ago 'Liquidity Crisis': $12B in DeFi Liquidity Sits Idle as 95% of Capital Goes Unused 4 hours ago Coinbase 'Negative Premium' at Widest Level since Q1, Signalling Weak U.S. Demand 5 hours ago Aerodrome Finance Hit by 'Front-End' Attack, Users Urged to Avoid Main Domain 5 hours ago In this article STRD STRD $ 0.05493 ◢ 9.77 %