ChainCatcher, citing Cointelegraph, reported that Bitcoin has fallen by about 40% since Strategy introduced STRC, a financing instrument tied to its Bitcoin acquisition strategy. STRC has now dropped below its $100 issue par value, prompting 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 begins trading meaningfully below par, questions arise over how efficiently that mechanism can continue to operate.
Bitcoin Purchases Slow While Holdings Remain Above 846,000 BTC
Strategy currently holds more than 846,000 BTC, but its recent pace of buying has slowed sharply. Data cited in the report shows that the company added 1,550 BTC in the week ending June 8, worth about $101 million. In the week ending June 15, it bought another 1,587 BTC, worth roughly $100 million. These purchases remain sizable in absolute terms, but they are much smaller than the company’s earlier buying activity.
For comparison, Strategy bought 34,164 BTC in a single week in April 2026, spending $2.54 billion. Against that earlier pace, the recent weekly allocation of around $100 million represents a notable decline in capital deployment. The report also noted that Strategy previously sold 32 BTC to meet dividend obligations. Although that amount is extremely small compared with the company’s overall Bitcoin holdings, the market viewed the sale as an indication that cash-flow pressure can increase when STRC’s fundraising efficiency weakens.
STRC Hits a Record Low and Trades at a Wider Discount
STRC was designed as a preferred-stock instrument intended to trade close to its $100 par value. Its structure allows Strategy to adjust dividends in order to attract investors, while using the capital raised to purchase Bitcoin. The instrument has now fallen to a record low. It briefly traded down to $82.53 before closing at $88.59, about 13% below par. Critics argue that STRC’s move below its issue value shows that Strategy’s funding channel is under pressure.
Longtime Bitcoin critic Peter Schiff described STRC as “like a typical centralized Ponzi scheme,” arguing that the model depends on continuous financing or the sale of Bitcoin to keep operating. Crypto trader DonAlt also questioned STRC’s recent price action, saying its trading behavior looked similar to a “Ponzi scheme.” The criticism is focused on the same core issue: if STRC cannot remain near par, Strategy’s ability to continue raising funds through the instrument and buying BTC is tested.
Discount Raises Yield as Dividend Adjustment Date Approaches
Other commentators offered a different explanation for the decline, saying the drop in STRC may have been driven more by leveraged liquidations than by deterioration in Strategy’s fundamentals. STRC had previously traded for an extended period near $99 to $100, attracting investors who used leverage. When the price broke below key levels, forced liquidations were triggered, adding to the downward move. Under this interpretation, the price decline is linked to trading structure rather than a direct change in the company’s Bitcoin holdings.
Analyst Scott Melker noted that the current discount has also lifted STRC’s effective yield. Because dividends are calculated on a $100 liquidation preference, an 11.5% annualized dividend would translate into an actual yield of about 12.8% if STRC trades at $90. If the price falls to $85, the yield would rise above 13%. Strategy is expected to announce its next STRC dividend adjustment on June 30. The market is now focused on whether STRC’s discount will persist and whether Strategy’s model of using capital markets financing to keep accumulating BTC can remain stable.