Strategy’s STRC Faces Pressure as Bitcoin Drops More Than 40% Since Launch

Strategy’s preferred stock STRC has fallen well below its $100 par value, reigniting debate over the sustainability of the company’s Bitcoin acquisition strategy. The security recently dropped to a record low of $82.53 before closing at $88.59, while Bitcoin has declined more than 40% since STRC launched in July 2025.

STRC was created to help Strategy raise capital for Bitcoin purchases through dividend-paying preferred shares. However, the widening discount has pushed its effective yield above 12.9%, making new capital raises more difficult.

Critics Question the Flywheel Strategy

Bitcoin critic Peter Schiff has described STRC as a “classic centralized Ponzi,” arguing that the model relies on continuous capital inflows or Bitcoin sales to meet obligations.

Bitcoin Purchases Slow Significantly

Strategy’s Bitcoin accumulation has slowed in recent weeks. The company purchased 1,550 BTC and 1,587 BTC in consecutive weeks during June, far below the massive acquisitions recorded earlier in 2026. It also sold 32 BTC to help meet dividend commitments.

Analysts Say Leverage, Not Fundamentals, Drove the Decline

Some market observers disagree with the criticism. Bitcoin strategist Jesse Myers argued that the sell-off was largely caused by leveraged investors being forced to exit positions as STRC fell below key price levels.

Analysts also note that STRC’s lower price increases its effective yield, potentially attracting income-focused investors. Strategy currently holds 846,842 BTC and continues to explore multiple funding options, including cash reserves and equity issuance, to support future Bitcoin purchases.