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STRC’s Drop Below Par Value Sparks Market Controversy: Strategy-Bitcoin’s Financing Flywheel Faces a Test
Svmuu News Bitcoin Since Strategy launched its “Bitcoin” financing tool, STRC, the token has fallen by approximately 40%, dropping below its $100 face value and sparking market discussions about the sustainability of Michael Saylor’s Bitcoin“flywheel” model.Strategy currently holds over 846,000 BTC, but its pace of buying has slowed significantly recently. Data shows that the company added 1,550 BTC, worth approximately $101 million, in the week ending June 8;and in the week ending June 15, it added another 1,587 BTC, valued at approximately $100 million. By comparison, in April 2026, the firm purchased 34,164 BTC in a single week, totaling $2.54 billion, indicating a significant decline in recent investment scale. Meanwhile, Strategy previously sold 32 BTC to cover dividend obligations. Although this amount is minuscule relative to its overall holdings, the market views this as a sign that the company’s cash flow pressure may increase when STRC’s financing efficiency declines.STRC was originally designed as a preferred stock instrument trading near its $100 par value, attracting investors through adjustable dividends and helping Strategy raise funds to purchase Bitcoin.Currently, the price of STRC has fallen to an all-time low, briefly dropping to $82.53 before closing at $88.59—approximately 13% below par value. Critics argue that STRC’s price falling below par value indicates that Strategy’s financing channels are under pressure. Bitcoin Longtime critic Peter Schiff has called STRC “a classic centralized Ponzi scheme,” arguing that the model relies on continuous fundraising or the sale of Bitcoin to stay afloat. Crypto trader DonAlt has also questioned STRC’s recent performance, noting that its trading behavior resembles that of a “Ponzi scheme.” However, some analysts believe that STRC’s decline is primarily due to leveraged liquidations rather than a deterioration in Strategy’s fundamentals. STRC had previously hovered around $99 to $100 for an extended period, attracting investors to trade with leverage; once the price fell below this key level, it triggered forced liquidations, exacerbating the decline. Analyst Scott Melker pointed out that STRC’s current yield has actually increased due to the discount. Since dividends are calculated based on a $100 liquidation priority, if the STRC price is $90, the 11.5% annualized dividend corresponds to an effective yield of approximately 12.8%;if the price falls to $85, the yield could exceed 13%. Strategy is expected to announce its next STRC dividend adjustment on June 30. The market is currently focused on whether STRC’s discount will persist and whether Strategy’s model of continuously increasing its BTC holdings through capital market financing can remain stable. (Cointelegraph)
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