- Strategy Inc.‘s STRC preferred stock plunged to $73.62, a 26% discount to its intended $100 stable price.
- A law firm is soliciting investors for a potential class action alleging Strategy issued “materially misleading business information.”
- STRC’s market cap lost nearly $2.8 billion from its target value as its BTC treasury sits on a $13.6 billion unrealized loss.
Shares of Strategy Inc.’s STRC preferred stock fell to a low of $73.62 on the Nasdaq, a sharp 26.4% below its designed $100 price. The slide came after a law firm announced an investigation into potential securities violations.
Despite seven dividend hikes to maintain its peg, STRC continues to trade far below target. Consequently, the stock’s market cap fell nearly $2.8 billion from its notional $10.5 billion value.
Meanwhile, the law firm is soliciting STRC holders to join a prospective suit. The firm alleges Strategy may have issued “materially misleading business information to the investing public.”
On social media, critics highlighted the company’s financial struggles. Skeptic Pledditor wrote, “He floods the timeline with AI-generated images of himself.”
Strategy has spent over $64.1 billion to buy Bitcoin now worth just $50.5 billion. This represents an unrealized loss of $13.6 billion on its BTC treasury.
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