Is the Market Hitting a Bottom? Strategy Recovers 11% From Intraday Lows

Strategy Shares Sink on Capital Raise Before Sharp Intraday Recovery

Strategy (MSTR) came under intense pressure Monday after revealing it had raised $1.44 billion through common stock sales to fund nearly two years of preferred dividend payments. The announcement, combined with a sharp overnight decline in bitcoin, triggered a 12.5% slide in the stock to its lowest level in almost 15 months during early U.S. trading.

Despite bitcoin holding near session lows around $85,000 throughout the day, MSTR staged an unexpected rebound. The stock recovered most of its losses by the close, ending down just 3.25% — a move that appears driven largely by short-covering. At its intraday bottom of $155.61, MSTR was down nearly 40% in a month and 66% from its mid-July 2025 peak, levels that likely forced bearish traders to unwind positions.

Under rising scrutiny over its ability to meet preferred dividend obligations, Michael Saylor’s team disclosed that the company had quietly sold shares over recent weeks to build a $1.44 billion reserve. The fund is intended to cover dividends for the next 21 months, with a goal of eventually securing a 24-month buffer. With bitcoin sliding and Strategy’s market value dropping sharply relative to its roughly 650,000-BTC treasury, the move appears aimed at avoiding forced bitcoin sales.

The dilution risk sparked heavy selling from common shareholders, accelerating the morning decline.

Longtime bitcoin critic and gold proponent Peter Schiff quickly took aim at the company’s approach.

“Strategy’s new business model is to sell stock, buy Treasuries yielding 4%, and use that to pay debt and preferred dividends costing 8%–10%,” he said. “How much longer will investors pretend this is sustainable just to gamble on Bitcoin?”

He added: “This is the beginning of the end. Saylor had to sell stock not to buy Bitcoin, but to raise cash just to meet obligations. The business model is broken, and Saylor is the biggest con man on Wall Street.”

Whether Monday’s powerful reversal signals a true bottom for Strategy remains uncertain. Still, crypto bulls may take comfort in Schiff’s long history of declaring victory at market lows — only to watch conditions turn sharply in the opposite direction weeks or months later