Bitcoin kept sliding on Thursday, and a big part of the pressure came from Strategy's flagship preferred stock, which sank to yet another record low once U.S. markets opened. The weakness in that preferred share spilled over into the broader mood across crypto.
Shortly after the opening bell, Stretch (STRC), the product that currently pays an 11.5% annual dividend, dropped 8% to $74.13, according to Yahoo Finance. That left it more than 25% below its $100 par value, the level around which Strategy designed the preferred stock to trade.
Bitcoin Slips Again
Bitcoin, meanwhile, fell sharply. The largest digital asset by market cap dropped to $58,188 before edging back up to $59,273 as of this writing, a 3.3% decline over the past day, according to CoinGecko. The move deepened losses that began a day earlier, after the cryptocurrency slumped to a 21-month low on Wednesday.
Pressure on Strategy and Saylor's Vision
Strategy's stock has taken a beating over the past few weeks, and STRC's persistent slide has tested confidence in the "digital credit" vision of Executive Chairman and co-founder Michael Saylor. The company's common MSTR shares tumbled 7% to $87.50 before steadying at $87.89 apiece.
A Wave of Liquidations
As Bitcoin and other assets fell on Thursday, liquidations across the crypto market picked up speed quickly. CoinGlass data shows more than $1.44 billion in positions wiped out over the past 24 hours, with long positions, bets that prices will rise, accounting for the bulk at $1.2 billion. Bitcoin led the damage with $658 million in total liquidations.
