Bitcoin (BTC) has fallen roughly 50% since Michael Saylor’s Strategy launched Stretch (STRC), its flagship Bitcoin-funding car, in late July 2025.
BTC/USD month-to-month chart. Supply: TradingView
Key takeaways:
- STRC is performing like a basic Ponzi scheme, argue Peter Schiff and different critics.
- Different analysts disagree, noting that STRC’s drop under the $100 par is because of a leverage wipeout.
Critics say STRC appears like a “basic centralized Ponzi”
STRC was designed to commerce close to its $100 par worth, enabling Strategy to boost capital to purchase extra Bitcoin. The instrument is now buying and selling at a deep low cost, suggesting that the BTC shopping for channel is beneath strain.
On Thursday, STRC fell to a report low of $82.53 earlier than closing at $88.59, nonetheless under the $100 par worth.
STRC day by day chart. Supply: TradingView
Launched in July 2025, STRC was designed to commerce close to par by adjustable dividends, at the moment 11.5% annualized, with proceeds used primarily to amass Bitcoin.
The widening low cost has pushed STRC’s efficient yield above 12.9% and contributed to a pause in at-the-market share issuance. That dangers slowing down the capital-raising flywheel behind Strategy’s Bitcoin treasury, which now holds greater than 846,000 BTC.
In finance, a “flywheel” is a self-reinforcing enterprise mannequin the place development in one metric straight helps develop one other, compounding momentum.
However buying and selling 13% under par has revived criticism of Strategy’s funding mannequin.
Bitcoin critic Peter Schiff has repeatedly described STRC as “a basic centralized Ponzi,” arguing that it is dependent upon Strategy’s means to boost contemporary capital by new share gross sales or promote Bitcoin to fulfill obligations.
Supply: X/Peter Schiff
Crypto dealer DonAlt additionally questioned STRC’s latest worth motion, asking why the instrument was “buying and selling like a Ponzi” after its sharp transfer under par.
Strategy has indirectly addressed this in latest statements, as an alternative persevering with to current STRC as most popular fairness supported by its Bitcoin-focused treasury technique.
Nonetheless, the corporate has moved STRC to a semi-monthly dividend schedule, with payouts now designed to happen twice a month fairly than month-to-month.
Strategy’s Bitcoin shopping for tempo slows as STRC slumps
The tempo of Strategy’s Bitcoin accumulation has slowed sharply as STRC trades under par worth.
The corporate added 1,550 BTC for $101 million in the week ending June 8 and another 1,587 BTC for $100 million in the week ending June 15, lifting whole holdings to 846,842 BTC.
These had been significant purchases, however they had been far smaller than Strategy’s weekly buys earlier in 2026.
As an example, in April, Strategy bought 34,164 BTC for $2.54 billion in a single week. In Could, it added another 24,869 BTC for roughly $2.01 billion. Against this, June’s weekly additions have been nearer to $100 million every.
The slowdown additionally coincided with a small however notable 32 BTC sale earlier in June, value about $2.5 million, to assist cowl dividend obligations.
Associated: Bitcoin price sets $64.5K week-to-date low as Strategy selling worries return
The sale was tiny in contrast with Strategy’s total Bitcoin treasury, nevertheless it confirmed that money obligations can nonetheless drive restricted BTC gross sales when STRC-led funding turns into much less environment friendly.
STRC-led weekly BTC shopping for estimates. Supply: STRC.LIVE
Analyst says STRC drop is a leverage wipeout
The STRC sell-off regarded extra like a leverage wipeout than a deterioration in Strategy’s fundamentals, in line with Jesse Myers, head of Bitcoin technique at The Smarter Internet Firm.
“Strategy is ok,” he said in a Thursday submit, including that the corporate might pay STRC dividends for 32 years if circumstances stay unchanged, and indefinitely if Bitcoin appreciates at roughly 2% yearly.
STRC’s lengthy stretch close to $99–$100 inspired traders to make use of heavy leverage, with some assuming the instrument would keep above $95. As soon as the value slipped, margin calls and compelled promoting accelerated the decline.
The low cost might also appeal to revenue patrons, in line with analyst Scott Melker.
In a Sunday submit, he famous that STRC’s dividends are primarily based on the $100 liquidation choice, not the market worth. At an 11.5% dividend price, patrons at $90 earn about 12.8%, whereas patrons at $85 earn roughly 13.5%.
Supply: X/Scott Melker
At present costs, STRC presents an efficient yield of about 13%. Strategy might announce its subsequent dividend price on June 30, whereas retaining different choices, together with MSTR share issuance and money reserves, to fund its Bitcoin purchases.
