STRC's fall below face value triggers market controversy Strategy Bitcoin financing flywheel faces test

Bitcoin has fallen by about 40% since Strategy launched the Bitcoin financing tool STRC, which fell below the $100 issue face value, sparking market discussions about the sustainability of Michael Saylor's Bitcoin "flywheel" model. Strategy currently holds more than 846,000 BTC units, but its buying pace has slowed significantly recently. Data shows that the company increased its holdings of 1,550 BTC units worth approximately US$101 million in the week ended June 8; and increased its holdings of 1,587 BTC units worth approximately US$100 million in the week ended June 15. In contrast, in April 2026, 34,164 BTC units were purchased in a single week, with an amount of US$2.54 billion. The scale of capital investment has dropped significantly in the near future. At the same time, Strategy had previously sold 32 BTC units to pay dividend obligations. Although the size was extremely small compared to its overall position, the market believed that this showed that when STRC financing efficiency declined, the company's cash flow pressure may increase. The STRC was originally designed as a preferred stock vehicle for transactions close to a face value of $100, attracting investors by adjusting dividends and helping Strategy raise money to buy Bitcoin. The STRC price has now fallen to an all-time low, once falling to US$82.53, and then closing at US$88.59, about 13% below the face value. Critics believe that the STRC price's fall below par value means Strategy's financing channels are under pressure. Long-time Bitcoin critic Peter Schiff called the STRC "like a typical centralized Ponzi structure" and believed that the model relied on continued financing or selling Bitcoin to keep it afloat. Crypto trader DonAlt also questioned the recent trend of STRC, saying its trading performance resembled a "Ponzi structure." However, some analysts believe that the decline in STRC is more caused by leverage liquidation than the deterioration of Strategy's fundamentals. The STRC had remained around US$99 to US$100 for a long time, attracting investors to use leveraged trading. After prices fell below key positions, forced liquidation was triggered, exacerbating the decline. Analyst Scott Melker pointed out that STRC's current yield has increased due to discounts. Since dividends are calculated based on a US$100 liquidation preference, if the STRC price is US$90, an annualized dividend of 11.5% corresponds to an actual yield of approximately 12.8%; if the price drops to US$85, the yield can exceed 13%. Strategy expects to announce its next STRC dividend adjustment on June 30. The market is currently concerned about whether the STRC discount will continue and whether Strategy's model of relying on capital market financing to continue to increase its holdings of BTC will remain stable.