According to ChainCatcher, citing Cointelegraph, Bitcoin has declined by about 40% since Strategy introduced STRC, its Bitcoin financing instrument. STRC has also fallen below its $100 issue par value, bringing fresh discussion around the sustainability of Michael Saylor’s Bitcoin “flywheel” model. The instrument was designed to help Strategy raise capital from the market and continue purchasing Bitcoin, but the move below par has put its funding mechanism under closer examination.
Strategy’s Bitcoin Purchases Have Slowed
Strategy currently holds more than 846,000 BTC, maintaining one of the largest corporate Bitcoin positions in the market. However, its recent pace of accumulation has slowed noticeably. Data cited in the report shows that the company added 1,550 BTC in the week ending June 8, with a value of about $101 million. In the following week ending June 15, Strategy bought another 1,587 BTC, worth about $100 million.
Those purchases are much smaller than the company’s earlier peak buying activity. In April 2026, Strategy bought 34,164 BTC in a single week, spending $2.54 billion. By comparison, the most recent weekly purchases have remained around the $100 million level. This reduction in capital deployment has become a central part of the debate over whether Strategy can keep financing large Bitcoin acquisitions at the same pace.
STRC Trades at a Discount to Its Intended Par Value
Strategy had earlier sold 32 BTC to meet dividend obligations. Although that amount is extremely small relative to its total holdings of more than 846,000 BTC, the sale has been viewed by the market as a sign that cash-flow pressure can rise when STRC’s financing efficiency declines. STRC was originally structured as a preferred stock instrument intended to trade near its $100 par value, with dividend adjustments used to attract investors and support Strategy’s Bitcoin purchase strategy.
STRC has now fallen to historical lows. It dropped as low as $82.53 before closing at $88.59, roughly 13% below par. Critics argue that the drop below face value shows pressure on Strategy’s funding channels. Before the decline, STRC had long traded near the $99 to $100 range, and that stability around par had encouraged some investors to use leverage in the trade.
Criticism, Liquidations and Dividend Yield Math
Longtime Bitcoin critic Peter Schiff said STRC “looks like a typical centralized Ponzi scheme,” arguing that the model depends on continuous financing or Bitcoin sales to keep functioning. Crypto trader DonAlt also questioned STRC’s recent price action, saying its trading behavior resembled a “Ponzi scheme.” At the same time, other analysts have argued that the decline in STRC was driven more by leveraged liquidations than by deterioration in Strategy’s fundamentals. Since STRC had previously remained close to $99 to $100, a break below key levels triggered forced liquidations and intensified the sell-off.
Analyst Scott Melker noted that STRC’s current yield has actually increased because of the discount. Since dividends are calculated based on the $100 liquidation preference, if STRC trades at $90, an 11.5% annualized dividend corresponds to an effective yield of about 12.8%. If the price falls to $85, the effective yield can exceed 13%. Strategy is expected to potentially announce its next STRC dividend adjustment on June 30. The current debate centers on whether STRC’s discount will persist and whether Strategy’s model of using capital markets financing to continue accumulating BTC can remain stable.