Strategy's MSTR may plunge 80% if it repeats this dot-com-era fractal
Strategy (MSTR) is flashing a bearish monthly head-and-shoulders setup similar to one seen before its dot-com era collapse. The chart is nearing a breakdown below $100–$105 neckline support; a decisive break could confirm the pattern and imply downside toward about $20, roughly 80% below current levels. At the same time, Strategy faces growing financing pressure. Its cash reserve has fallen sharply while preferred-stock dividend obligations have surged to about $1.2 billion a year, reducing dividend coverage to roughly 14 months. The company’s preferred stock, STRC, has dropped below par and now yields over 13%, signaling investor stress. To preserve Bitcoin holdings, Strategy has relied more on share issuance, including a June sale of MSTR stock, which limits BTC selling but increases dilution risk for common shareholders. If STRC stays weak, further dilution or slower Bitcoin buying could continue to pressure MSTR.
