Shares of Strategy (MSTR) fell 5% in early Wednesday trading, slipping below $100 for the first time since March 2024. The stock traded at around $98, extending losses to 34% year-to-date and roughly 74% over the past 12 months.

The decline comes as Bitcoin remains under pressure, with the crypto falling below $61,000 this morning and trading roughly 52% below its all-time high.

At the same time, Strategy’s STRC perpetual preferred shares dropped below their $100 par value, increasing dividend costs and effectively halting a key funding mechanism for additional Bitcoin purchases.

CryptoQuant CEO urges Strategy to rethink its Bitcoin acquisition framework

Strategy’s Bitcoin treasury totals 847,363 BTC, currently valued at about $52 billion. Continued weakness in Bitcoin has left the company with more than $12 billion in unrealized losses on its holdings.

CryptoQuant CEO Ki Young Ju has called on Strategy to reconsider its Bitcoin purchasing strategy. In a statement on X, Ju said the aggressive accumulation strategy appears to be acting more as a liquidity sink than a price catalyst, as elevated selling pressure is absorbing new demand.

According to the analyst, Bitcoin has traded largely sideways despite substantial rise in realized capital, indicating that new demand is being offset by selling pressure. He believes the market may need a deeper reset before a stronger uptrend can occur.

Ju suggested that Strategy temporarily halt purchases, improve its balance sheet, implement a model-driven buying approach, and establish a framework for taking profits near future market peaks.