Strategy Crashed 71% Since The Election—Here’s Why It Could Get Worse In January
Strategy Inc. (NASDAQ:MSTR) is down 71% from its November 2024 peak of $543 to $156 while facing $8.8 billion in forced outflows if MSCI excludes it on Jan. 15.
The Change That Crushed Bulls
On July 31, Strategy published equity guidance in its earnings deck stating it would not issue common stock below 2.5x mNAV except to pay interest on debt obligations and fund preferred equity dividends.
The company has $824 million in annual preferred dividends.
However, since that July announcement, Strategy issued $4.9 billion in common stock with $4 billion of that issued at a mNAV below 1.0x in November and December.
Strategy claims it’s targeting two years of preferred dividend coverage, which would account for $1.6 billion of the $4.9 billion total.
But that still leaves $3.3 billion in dilutive stock sales that violated its own five-month-old guidance.
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