Bitcoin price is down over 40% since STRC launched: Is Strategy 'fine'?

Bitcoin (BTC) has fallen astir 50% since Michael Saylor’s Strategy launched Stretch (STRC), its flagship Bitcoin-funding vehicle, successful precocious July 2025.

BTC/USD monthly chart. Source: TradingView

Key takeaways:

• STRC is acting similar a classical Ponzi scheme, reason Peter Schiff and different critics.
• Other analysts disagree, noting that STRC's driblet beneath the $100 par is owed to a leverage wipeout.

Critics accidental STRC looks similar a "classic centralized Ponzi"

STRC was designed to commercialized adjacent its $100 par value, enabling Strategy to rise superior to bargain much Bitcoin. The instrumentality is present trading astatine a heavy discount, suggesting that the BTC buying transmission is nether pressure.

On Thursday, STRC fell to a grounds debased of $82.53 earlier closing astatine $88.59, inactive beneath the $100 par value.

STRC regular chart. Source: TradingView

Launched successful July 2025, STRC was designed to commercialized adjacent par done adjustable dividends, presently 11.5% annualized, with proceeds utilized chiefly to get Bitcoin.

The widening discount has pushed STRC’s effectual output supra 12.9% and contributed to a intermission successful at-the-market stock issuance. That risks slowing down the capital-raising flywheel down Strategy’s Bitcoin treasury, which present holds much than 846,000 BTC.

In finance, a "flywheel" is simply a self-reinforcing concern exemplary wherever maturation successful 1 metric straight helps turn another, compounding momentum.

But trading 13% beneath par has revived disapproval of Strategy’s backing model.

Bitcoin professional Peter Schiff has repeatedly described STRC arsenic “a classical centralized Ponzi,” arguing that it depends connected Strategy’s quality to rise caller superior done caller stock income oregon merchantability Bitcoin to conscionable obligations.

Source: X/Peter Schiff

Crypto trader DonAlt besides questioned STRC’s caller terms action, asking wherefore the instrumentality was “trading similar a Ponzi” aft its crisp determination beneath par.

Strategy has not straight addressed this successful caller statements, alternatively continuing to contiguous STRC arsenic preferred equity supported by its Bitcoin-focused treasury strategy.

However, the institution has moved STRC to a semi-monthly dividend schedule, with payouts present designed to hap doubly a period alternatively than monthly.

Strategy’s Bitcoin buying gait slows arsenic STRC slumps

The gait of Strategy’s Bitcoin accumulation has slowed sharply arsenic STRC trades beneath par value.

The institution added 1,550 BTC for $101 million successful the week ending June 8 and another 1,587 BTC for $100 million successful the week ending June 15, lifting full holdings to 846,842 BTC.

Those were meaningful purchases, but they were acold smaller than Strategy’s play buys earlier successful 2026.

For instance, successful April, Strategy bought 34,164 BTC for $2.54 billion successful a azygous week. In May, it added another 24,869 BTC for astir $2.01 billion. By contrast, June’s play additions person been person to $100 cardinal each.

The slowdown besides coincided with a tiny but notable 32 BTC merchantability earlier successful June, worthy astir $2.5 million, to assistance screen dividend obligations.

Related: Bitcoin terms sets $64.5K week-to-date debased arsenic Strategy selling worries return

The merchantability was tiny compared with Strategy’s wide Bitcoin treasury, but it showed that currency obligations tin inactive unit constricted BTC income erstwhile STRC-led backing becomes little efficient.

STRC-led play BTC buying estimates. Source: STRC.LIVE

Analyst says STRC driblet is simply a leverage wipeout

The STRC sell-off looked much similar a leverage wipeout than a deterioration successful Strategy’s fundamentals, according to Jesse Myers, caput of Bitcoin strategy astatine The Smarter Web Company.

“Strategy is fine,” helium said successful a Thursday post, adding that the institution could wage STRC dividends for 32 years if conditions stay unchanged, and indefinitely if Bitcoin appreciates astatine astir 2% annually.

STRC’s agelong long adjacent $99–$100 encouraged investors to usage dense leverage, with immoderate assuming the instrumentality would enactment supra $95. Once the terms slipped, borderline calls and forced selling accelerated the decline.

The discount whitethorn besides pull income buyers, according to expert Scott Melker.

In a Sunday post, helium noted that STRC's dividends are based connected the $100 liquidation preference, not the marketplace price. At an 11.5% dividend rate, buyers astatine $90 gain astir 12.8%, portion buyers astatine $85 gain astir 13.5%.

Source: X/Scott Melker

At existent prices, STRC offers an effectual output of astir 13%. Strategy whitethorn denote its adjacent dividend complaint connected June 30, portion retaining different options, including MSTR stock issuance and currency reserves, to money its Bitcoin purchases.