According to ChainCatcher, citing Cointelegraph, Bitcoin has declined by roughly 40% since Strategy introduced its Bitcoin financing instrument STRC. STRC has also fallen below its $100 issue par value, prompting renewed discussion around the sustainability of Michael Saylor’s Bitcoin “flywheel” model. The structure is built around raising capital through market instruments and using those proceeds to buy more Bitcoin. Once the financing instrument itself trades under pressure, the market begins to reassess how stable that cycle remains.
Strategy currently holds more than 846,000 BTC, but its recent pace of accumulation has slowed noticeably. Data show that the company added 1,550 BTC, worth about $101 million, in the week ending June 8. In the week ending June 15, it purchased another 1,587 BTC, worth about $100 million. By contrast, in one week in April 2026, Strategy bought 34,164 BTC for $2.54 billion. The comparison points to a sharp reduction in the scale of recent capital deployment.
STRC’s Discount Puts the Financing Channel Under Pressure
STRC was designed as a preferred stock instrument intended to trade close to its $100 par value. By adjusting dividends, it was meant to attract investors and help Strategy raise funds for further Bitcoin purchases. The instrument has now fallen to historical lows, touching $82.53 at one point before closing at $88.59, about 13% below par. Critics argue that the break below par shows Strategy’s financing channel is under strain.
Strategy had previously sold 32 BTC to meet dividend obligations. That amount is extremely small relative to its total holdings of more than 846,000 BTC, but market participants viewed it as a sign that cash-flow pressure can increase when STRC’s financing efficiency declines. As a result, the discount in STRC has become closely tied to questions about how Strategy funds its continued Bitcoin accumulation.
Critics Point to a Ponzi-Like Structure, Others Cite Leverage
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 operating. Crypto trader DonAlt also questioned STRC’s recent trading behavior, saying it resembled a “Ponzi scheme.” These criticisms directly link STRC’s price weakness with Strategy’s broader mechanism of financing Bitcoin purchases through capital markets.
However, some market observers argue that STRC’s decline was driven more by leveraged liquidations than by deterioration in Strategy’s fundamentals. STRC had previously remained near the $99 to $100 range for an extended period, attracting investors who used leverage to trade it. Once the price broke below key levels, forced liquidations were triggered, deepening 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, an STRC price of $90 would turn an 11.5% annualized dividend into an effective yield of about 12.8%. If the price falls to $85, the yield can exceed 13%. Strategy’s next STRC dividend adjustment is expected around June 30. The market is watching whether the discount in STRC persists and whether Strategy’s model of using capital markets to keep accumulating BTC can remain stable.