As of late June 2026, the cash reserves for Strategy (MSTR) have decreased by 38%, raising concerns regarding potential dilution for shareholders. The company's dividend obligations have surged to nearly $1.2 billion, reportedly increasing the financial strain on MSTR.
Michael Saylor's firm is currently exhibiting a technical pattern reminiscent of the head-and-shoulders formation seen prior to its significant drop during the dot-com bubble. This pattern has formed since March 2024, with the stock poised to break below the critical support level between $100 and $105.
If MSTR falls below this neckline, it could signal an impending decline of up to 80%, potentially targeting a price around $20. The last comparable pattern resulted in a more than 99% drop in stock value over two years.