MicroStrategy's STRC Preferred Stock Falls 11% to $88, Analyst Warns of Limited Options

According to Jeff Dorman, chief investment officer at digital-asset firm Arca, MicroStrategy faces a critical challenge as its STRC preferred stock fell to $88 on June 19, down 11% over the past month and trading well below its $100 par value.

Dorman outlined three scenarios: a 70% probability MicroStrategy continues small monthly MSTR sales, driving the stock toward 0.70 multiple of net asset value; a 25% chance Saylor sells $3-$4 billion in Bitcoin to stabilize STRC; and a 5% nuclear option of eliminating dividends. As of press time, MicroStrategy holds 846,842 BTC valued at $53.4 billion, with STRC trading at a 1.15 multiple of net asset value. The analyst predicts further downside, suggesting the stock should trade at a discount.