Strategy’s STRC Crashes to $75 as Retail Investors Lose Confidence in Saylor’s Bitcoin Model

Strategy still has enough US dollar reserves to cover STRC dividend obligations for almost 10 months. The current stock price does not threaten those payments. But that is not what has traders worried.

STRC, the perpetual preferred stock that was supposed to hold a $100 par value, has crashed to $75 a 25% discount to its peg. MSTR shares are down 8% today to $86, their lowest level since February 2024. The company’s enterprise multiple to net asset value has compressed to just 1.05, a far cry from the premium that once underpinned the entire bull case.

The Problem Is Confidence, Not Solvency

STRC trading below $100 does not mean Strategy is about to collapse. What it does mean is that the company can no longer issue preferred shares on attractive terms, making its bitcoin acquisition engine less efficient. That is very different from a model failure.

The deeper damage is to trust. STRC was marketed to retail investors as a low volatility income product designed to stay near $100. It has not done that and the people who bought it as a retirement income product are the ones paying the price.

Retail Got Sold a Story That Is Not Playing Out

Blume pointed to something bigger than numbers. “Ironically, the human foibles of arrogance and emotion, and the persuasiveness of a charismatic leader, are what the cold, algorithmic functions of Bitcoin were designed to protect people from,” he said. “Saylor’s incentives are not the same as a retail investor.”

Blume stopped short of calling a full unwind but said Strategy looks highly unlikely to be a meaningful bitcoin buyer for the foreseeable future.