STRC Falls Below Par Value Sparking Market Controversy: Strategy's Bitcoin Funding Flywheel Faces Test

Odaily News Since Strategy launched its Bitcoin financing instrument STRC, Bitcoin has dropped approximately 40%, with STRC falling below its $100 issue price, sparking market discussions on the sustainability of Michael Saylor's Bitcoin "flywheel" model. Strategy currently holds over 846,000 BTC, but its buying pace has notably slowed recently. Data shows the company added 1,550 BTC in the week ending June 8, worth about $101 million; and another 1,587 BTC in the week ending June 15, worth approximately $100 million. In comparison, during a single week in April 2026, it purchased 34,164 BTC worth $2.54 billion, indicating a significant decline in recent capital deployment.

Meanwhile, Strategy previously sold 32 BTC to meet dividend obligations. Although the amount is minimal relative to its total holdings, the market views this as a sign that STRC's financing efficiency is declining, potentially increasing the company's cash flow pressure. STRC was originally designed as a preferred stock instrument trading near its $100 par value, attracting investors through adjusted dividends to help Strategy raise funds for Bitcoin purchases. Currently, STRC's price 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 trading below par indicates Strategy's funding channels are under pressure. Long-time Bitcoin critic Peter Schiff described STRC as "a typical centralized Ponzi-like structure," claiming the model relies on continuous funding or selling Bitcoin to sustain itself. Crypto trader DonAlt also questioned STRC's recent performance, stating its trading pattern resembles a "Ponzi-like structure."

However, some analysts believe STRC's decline is more attributable to leveraged liquidations rather than a deterioration of Strategy's fundamentals. STRC had previously maintained levels near $99 to $100 for an extended period, attracting investors using leverage. When the price dropped below this key support level, forced liquidations were triggered, 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 the $100 liquidation preference, a STRC price of $90 would yield approximately 12.8% on the 11.5% annualized dividend; if the price drops to $85, the yield could exceed 13%.

Strategy is expected to announce its next STRC dividend adjustment around June 30. The market is currently focused on whether the STRC discount will persist and whether Strategy's model of continuously accumulating BTC through capital market financing can remain stable. (Cointelegraph)