STRC’s slide below par has emboldened critics, slowed Strategy’s Bitcoin buys and sparked debate over whether Michael Saylor’s BTC flywheel is still fine.
Bitcoin (BTC) has fallen roughly 50% since Michael Saylor’s Strategy launched Stretch (STRC), its flagship Bitcoin-funding vehicle, in late July 2025.
BTC/USD monthly chart. Source: TradingView
STRC was designed to trade near its $100 par value, enabling Strategy to raise capital to buy more Bitcoin. The instrument is now trading at a deep discount, suggesting that the BTC buying channel is under pressure.
On Thursday, STRC fell to a record low of $82.53 before closing at $88.59, still below the $100 par value.
Launched in July 2025, STRC was designed to trade near par through adjustable dividends, currently 11.5% annualized, with proceeds used primarily to acquire Bitcoin.
The widening discount has pushed STRC’s effective yield above 12.9% and contributed to a pause in at-the-market share issuance. That risks slowing down the capital-raising flywheel behind Strategy’s Bitcoin treasury, which now holds more than 846,000 BTC.
In finance, a "flywheel" is a self-reinforcing business model where growth in one metric directly helps grow another, compounding momentum.
But trading 13% below par has revived criticism of Strategy’s funding model.
Bitcoin critic Peter Schiff has repeatedly described STRC as “a classic centralized Ponzi,” arguing that it depends on Strategy’s ability to raise fresh capital through new share sales or sell Bitcoin to meet obligations.
Crypto trader DonAlt also questioned STRC’s recent price action, asking why the instrument was “trading like a Ponzi” after its sharp move below par.
Strategy has not directly addressed this in recent statements, instead continuing to present STRC as preferred equity supported by its Bitcoin-focused treasury strategy.
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