Bitcoin down 50% since STRC launch; STRC below $100

Bitcoin has fallen roughly 50% since Strategy launched its STRC funding vehicle in late July 2025. STRC traded to a record intraday low of $82.53 before closing at $88.59, about 13% below its $100 par and pushing its effective yield above 12.9%.

STRC is a preferred-equity instrument structured to trade near a $100 liquidation preference. Dividends are adjustable and currently set at an 11.5% annualized rate, with most proceeds intended to finance Bitcoin purchases for Strategy’s treasury.

The widening discount has paused at-the-market share issuance, which has reduced the pace at which Strategy can raise fresh capital through STRC. Company officials moved STRC to a semi-monthly dividend schedule and are expected to announce the next dividend rate on June 30.

Strategy’s Bitcoin buying pace has slowed since STRC fell below par. In the week ending June 8 the company added 1,550 BTC for about $101 million, and in the following week it added 1,587 BTC for about $100 million, bringing total holdings to about 846,842 BTC. Those purchases contrast with larger weekly buys earlier in 2026, including 34,164 BTC for $2.54 billion in April and 24,869 BTC for $2.01 billion in May.

Strategy sold 32 BTC, roughly $2.5 million, in early June to help cover dividend obligations, showing that cash needs can result in limited sales when STRC funding is less efficient.

Critics have questioned the instrument’s structure. Peter Schiff described STRC as “a classic centralized Ponzi,” arguing it depends on the company’s ability to keep raising capital or sell Bitcoin to meet obligations. Crypto trader DonAlt asked why STRC was “trading like a Ponzi” after the move below par.

Other market participants attribute the price action to a leverage unwind. Jesse Myers, head of Bitcoin strategy at The Smarter Web Company, wrote that “Strategy is fine,” adding that under current conditions the company could pay STRC dividends for 32 years and could do so indefinitely if Bitcoin appreciates about 2% a year. Analyst Scott Melker pointed out that STRC dividends are calculated on the $100 liquidation preference rather than market price, meaning buyers who purchase at a discount receive a higher effective yield; at an 11.5% dividend rate, buyers at $90 would see roughly a 12.8% yield and buyers at $85 about 13.5%.

Strategy retains other funding options, including issuing additional MSTR shares and drawing on cash reserves. The discount to par and the recent market reactions have interrupted the company’s planned STRC-led funding mechanism and prompted debate among market participants about the causes of the sell-off.