STRC drops below par value, sparking market controversy: Strategy's Bitcoin financing flywheel faces challenges

Odaily News Since Strategy launched its Bitcoin financing tool STRC, Bitcoin has dropped by approximately 40%, and STRC has fallen below its $100 issuance par value, sparking market debate on the sustainability of Michael Saylor's Bitcoin "flywheel" model. Strategy currently holds over 846,000 BTC, but its pace of recent purchases has slowed significantly. Data shows the company added 1,550 BTC, worth about $101 million, in the week ending June 8; and another 1,587 BTC, worth about $100 million, in the week ending June 15. In comparison, during one week in April 2026, it purchased 34,164 BTC for $2.54 billion, highlighting a notable decline in recent capital deployment.

Meanwhile, Strategy previously sold 32 BTC to meet dividend obligations. Although this is minuscule compared to its total holdings, the market views it as a sign of potential increased cash flow pressure when STRC's financing efficiency declines. STRC was originally designed as a preferred stock tool trading near its $100 par value, attracting investors through dividend adjustments and helping Strategy raise funds to buy Bitcoin. STRC's price has now fallen to an all-time low, once dropping to $82.53 before closing at $88.59, approximately 13% below par value.

Critics argue that STRC trading below par value indicates Strategy's financing channels are under pressure. Long-time Bitcoin critic Peter Schiff called STRC "a typical centralized Ponzi scheme," claiming the model relies on continuous financing or selling Bitcoin to sustain operations. Crypto trader DonAlt also questioned STRC's recent performance, stating its trading behavior resembles a "Ponzi scheme."

However, some analysts believe STRC's decline is more due to leveraged liquidations than a deterioration in Strategy's fundamentals. STRC had previously traded steadily around $99 to $100, attracting investors using leverage. When the price broke through a 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 the $100 liquidation preference, with STRC at $90, the 11.5% annualized dividend corresponds to an actual yield of about 12.8%. If the price falls to $85, the yield could exceed 13%.

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