MSTR stock trades lower as first Bitcoin sale since 2022 is announced to fund dividends

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Strategy slides 2.99% to $113.07 today

Highlights

STRC preferred shares fell to a record low of $89, forcing Strategy to pause capital raising for further Bitcoin allocations.
Strategy sold 32 Bitcoin in May for $2.5 million to fund dividends and established a $1.1 billion reserve for liabilities.
Technical indicators signal persistent bearish momentum, with price expected to range between $104.26 and $121.88 over the next few days.

Liquidity constraints emerge as preferred share rout halts Bitcoin buys

STRC preferred shares issued by Strategy reached a record low at $89, halting the company's capital raising program intended to fund further Bitcoin purchases, according to CoinDesk, Blockonomi, and The Block. This disruption curtails Strategy's ability to build additional digital asset exposure and signals tightening liquidity following recent declines in the preferred instrument. In late May, Strategy sold 32 Bitcoin worth approximately $2.5 million to meet STRC dividend obligations—its first Bitcoin sale since 2022—while also establishing a $1.1 billion reserve to cover outstanding preferred dividends and debt obligations. These developments have raised concerns over funding stability and preferred share performance under recent market stresses.

Bearish momentum intensifies as price breaches major supports

On the technical front, MSTR trades below the MA-20 ($125.38) and MA-50 ($122.15) on the hourly chart, and remains well beneath the daily MA-200 ($192.98). The Ichimoku Kijun at $126.41 serves as immediate resistance. Oscillators reflect consistent selling, with MACD in sell territory, ADX neutral, and RSI at 35.69 indicating oversold conditions, alongside Stoch RSI, CCI, and BBP all favoring further downside. The Awesome Oscillator also confirms prevailing bearish momentum intraday.

Downside risk persists as narrow trading band caps upside

Over the next two to three trading days, MSTR is expected to trade within a volatility band between $104.26 and $121.88. The probability of an upward breakout is limited to 23%, while the likelihood of further declines remains elevated. A bullish scenario would require decisive movement above the $126.41 resistance, while a clear drop below $104.26 may open the door to deeper weakness. The baseline forecast is for sideways action within the projected range.

Anton Kharitonov, expert at Traders Union, sees mounting risks for Strategy Incorporated as both capital markets and technical signals deteriorate. He notes that the collapse in STRC preferred shares and the resulting halt in Bitcoin-linked fundraising highlight tightening liquidity and ongoing funding stress. The technical outlook strengthens this negative stance, with persistent bearish momentum and significant resistance overhead. "Unless MSTR decisively regains $126.41, the bias stays defensive and further downside remains likely."

Earlier, analysts noted that persistent technical weakness and concerns about capital structure were weighing on Strategy Incorporated’s outlook. The latest disruptions in the company’s preferred share program and the first Bitcoin sale in two years underscore deepening liquidity and funding challenges, making the sustainability of current strategy and preferred stock performance the critical factors to monitor moving forward.

Source of Data: MSTR Price Analysis by TU

The analysis is based on a proprietary model combining technical, on-chain, and expert data. Not investment advice. See methodology

The information is based on forecasts and does not constitute investment advice or a guarantee of future results. Market conditions may change. See our Disclaimer and Editorial Integrity for details.