According to Cointelegraph, Bitcoin has dropped by roughly 40% since Strategy introduced STRC, its Bitcoin financing instrument. STRC has now fallen below its $100 issue par value, placing renewed attention on the sustainability of the Bitcoin “flywheel” model associated with Michael Saylor. The structure was designed to help Strategy raise capital through the market and use those funds to keep buying Bitcoin, linking the company’s securities issuance with its growing BTC position.
Strategy currently holds more than 846,000 BTC, but its recent pace of accumulation has slowed sharply. Data cited in the report shows that the company added 1,550 BTC, worth about $101 million, in the week ending June 8. In the week ending June 15, it added another 1,587 BTC, valued at about $100 million. Those figures are far below the level seen in April 2026, when Strategy purchased 34,164 BTC in a single week for $2.54 billion.
Slower Bitcoin Purchases and Dividend Obligations
The slowdown in purchases is not the only point drawing attention. Strategy previously sold 32 BTC to meet dividend obligations. While that sale was tiny compared with its overall holdings of more than 846,000 BTC, it has been viewed as a sign that cash-flow pressure becomes a more prominent issue when STRC’s financing efficiency declines. STRC was originally designed as a preferred stock instrument intended to trade near its $100 face value, with dividends adjusted to attract investors and support Strategy’s ability to raise funds for further Bitcoin purchases.
STRC has since traded down to historical lows. The instrument fell as low as $82.53 before closing at $88.59, about 13% below par. Critics argue that a break below the $100 level shows pressure on Strategy’s funding channel. For a model built around repeated access to capital markets, a financing instrument trading at a meaningful discount to par puts the relationship between investor demand, dividend incentives and future Bitcoin purchases under greater examination.
Peter Schiff and DonAlt Criticize STRC’s Structure
Longtime Bitcoin critic Peter Schiff described STRC as “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 price action, saying it traded in a way similar to a “Ponzi scheme.” Their criticism centers on whether Strategy can continue using STRC as an effective funding channel if the instrument no longer holds close to its intended par value.
There is also a competing explanation for the price decline. Some market observers cited in the report argue that STRC’s drop was driven more by leveraged liquidations than by deterioration in Strategy’s fundamentals. STRC had traded for an extended period near $99 to $100, a range that attracted leveraged positions. Once the price broke below key levels, forced liquidations were triggered, which intensified the decline.
Discount Raises the Effective Yield Ahead of Dividend Adjustment
Analyst Scott Melker noted that STRC’s discount has increased its effective yield. Because dividends are calculated based on the $100 liquidation preference, a STRC price of $90 would turn an 11.5% annual dividend into an effective yield of about 12.8%. If the price falls to $85, the yield can exceed 13%. Strategy is expected to announce its next STRC dividend adjustment on June 30. The central questions now are whether STRC’s discount persists and whether Strategy’s capital-market-driven approach to accumulating BTC can remain stable under these conditions.