Strategy falls below $100 as Bitcoin drops

• Strategy shares fell below US$100, reaching an intraday low of US$99.50.
• The decline comes as Bitcoin (CRYPTO:BTC) trades below Strategy's average acquisition cost of US$75,651 per coin.
• Investors are reassessing the premium historically assigned to companies with large Bitcoin treasury holdings.

Strategy shares fell below the US$100 level on Wednesday, touching an intraday low of US$99.50 as weakness in Bitcoin (CRYPTO:BTC) weighed on the company's valuation.

The move marked the first break below US$100 since March 2024 and comes as Bitcoin trades below Strategy's average purchase price of US$75,651 across its holdings of 847,363 BTC, representing roughly 4% of the cryptocurrency's total supply.

The company has repeatedly stated that its Bitcoin-backed debt structure does not include margin call requirements.

Strategy's business model relies on financing Bitcoin purchases through equity offerings and convertible debt, a strategy that amplified gains during rising markets but can increase pressure on shareholders when Bitcoin prices decline.

The stock was down 4.18% at US$99.50 during Wednesday trading, and the decline has prompted renewed focus on how lower share prices could affect Strategy's future capital-raising options.

The development comes as institutional interest broadens beyond Bitcoin-focused investments, with growing activity in tokenised real-world assets and alternative blockchain networks attracting capital from financial firms and digital asset investors.

Market participants are also monitoring whether the changing valuation of Strategy influences sentiment toward other public companies that hold substantial Bitcoin reserves on their balance sheets, including cryptocurrency mining firms and treasury-focused businesses.

At the time of reporting, Bitcoin price was $61,540.09.