Strategy, the bitcoin-hoarding firm founded by Michael Saylor, is tumbling and is on track to close at its lowest level in more than two years.

The stock slumped about 8% Thursday afternoon, so far the worst performer in the Nasdaq 100. It has fallen for seven consecutive days, marking its worst seven-day losing streak since the depths of the crypto winter in November 2022.

The company has come under pressure in recent weeks after its biggest dividend-paying preferred stock, Stretch, started sliding below its par value of $100 and plunged to a record low this week. This steep discount severely limits Strategy's ability to issue new preferred capital to fund its bitcoin purchases. It could also force the company to increase Stretch's already hefty 11.5% annual dividend.

Investors were also rattled by Strategy's recent decision to use proceeds from common stock sales to buy bitcoin and bolster its cash reserve. While the move helps cover Strategy's preferred dividend obligations, it comes at the expense of diluting common shareholders.

Meanwhile, bitcoin is in a tailspin of its own, recently trading around $59,573 and having erased more than half of its value since an early-October peak above $126,000.