Strategy’s MSTR, STRC Plunge to 52-Week Lows

Strategy’s MSTR and STRC Crash to 52-Week Lows

Shares of MicroStrategy (MSTR) and its preferred stock (STRC) plummeted to 52-week lows on Wednesday, signaling a real-time stress test for the treasury model pioneered by Michael Saylor.

MSTR fell 9.35% to $94.13, hitting an intraday low of $92.28, a dramatic decline from its 52-week high of $457.22. STRC, the dividend-paying preferred stock that Saylor has utilized to finance Bitcoin purchases, dropped 7.41% to $80.84. This also marked a 52-week low and pushed the stock well below its $100 par value. Bitcoin itself briefly dipped to $59,200 during the broader market selloff before recovering to $61,000 following strong earnings from Micron. Both MSTR and STRC saw modest rebounds in after-hours trading.

The central question now is whether this reckoning is reaching its peak, and if so, when. A $300 million cash raise on Monday was intended to stabilize STRC, yet the stock printed a new low just three days later. This suggests the market remains unconvinced that cash alone can resolve the underlying issues. The deeper concern is a potential “doom loop”: as MSTR’s stock price falls, Saylor has less collateral to purchase Bitcoin or raise funds to service his debt, although his current cash reserves cover approximately 10 months of obligations.

Some analysts believe Saylor should consider selling a significant portion of the company’s Bitcoin holdings to reset its financial position. Others speculate that large Bitcoin holders, or “whales,” may be actively attempting to destabilize Saylor’s position and drive down BTC prices to force his hand. The exact mechanics at play are unclear, but the volatile ride is far from over.

Kalshi Targets a $40 Billion Valuation as Sports Betting Drives Volume

Kalshi, the financial exchange, is reportedly in discussions to secure new funding at a valuation of approximately $40 billion, according to a report by the Financial Times. This figure represents a near doubling of its $22 billion valuation from a $1 billion funding round closed just three months ago in April.

This significant valuation jump is attributed to a surge in trading volume, which exceeded $17 billion last month and is on pace to surpass $25 billion in June. This is a substantial increase from under $5 billion a year prior, with sports-related contracts accounting for roughly 65% of the total volume. For context, Kalshi has already facilitated over $5 billion in trading volume related to the World Cup, with the tournament not yet at its halfway point.

While sports betting has been a major growth driver, Kalshi’s expansion is not solely reliant on this sector. Its cryptocurrency markets have also seen remarkable growth, evolving into a $1 billion per week market segment, a twentyfold increase since December 2025. The platform is also introducing legal perpetual futures contracts, which are expected to further boost trading volumes. Overall, Kalshi boasts nearly three times the open interest of Polymarket across all market sectors, with $1.1 billion compared to Polymarket’s $484 million.

This rapid growth has also led to a substantial increase in fees. Last June, Kalshi generated $8 million in fees. This June, the platform had already cleared $180 million with five days remaining in the month, putting its first-half 2026 fees over $800 million, with month-over-month growth projected between 10-20%. At this trajectory, the $40 billion valuation may prove to be conservative by year’s end.