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Arkham

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Strategy’s preferred stock STRC has dropped roughly 25% below its $100 par value, raising fresh questions over whether Michael Saylor’s company can keep using high-yield securities to support its Bitcoin (<a href="https://yellow.com/asset/btc" rel="noopener noreferrer nofollow">BTC</a>)-<a href="https://yellow.com/news/strategy-buys-2-5b-bitcoin-largest-purchase" rel="noopener noreferrer nofollow">focused capital strategy.</a>
Arkham said STRC was trading around $76.20 after depegging from par, but rejected comparisons with Terra Luna’s collapse because Strategy is not exposed to the same forced liquidation mechanism.
“IS STRC THE NEXT LUNA? Short answer - not quite,” Arkham <a href="https://x.com/arkham/status/2070150501153288235?s=20" rel="noopener noreferrer nofollow">wrote</a> on X.
The more immediate issue is whether investors still believe Strategy will continue paying the preferred stock’s large dividend. STRC is structured as a perpetual preferred stock carrying an 11.5% dividend at a $100 par value.
According to Arkham, there are 104.89 million STRC shares outstanding. At the stated dividend rate, maintaining those payouts would cost Strategy about $1.2 billion per year. Arkham said Strategy had $1.4 billion in U.S. dollar reserves as of Monday.
<h2 id="dividend-confidence-becomes-the-market-test">Dividend Confidence Becomes The Market Test</h2>
Arkham said the decline in STRC reflects the market’s view of whether Saylor will continue paying dividends, rather than any automatic trigger that would force Strategy to defend the stock price.
“Crucially: Strategy does not legally have to pay these dividends,” Arkham said. “If Strategy gets in trouble, Saylor does not have to prioritise STRC shareholder dividends.”
That distinction separates STRC from algorithmic stablecoin collapses such as Terra Luna. STRC falling below par does not force Saylor to sell Bitcoin, issue capital or support the preferred stock’s market price.
Arkham said that unlike Terra Luna, Saylor cannot “get liquidated” if STRC falls in value.
Still, the decline matters because Strategy’s broader model depends on market confidence. The company has built its identity around using capital markets to expand its Bitcoin holdings. If preferred shareholders begin to doubt the sustainability of payouts, Strategy’s future fundraising channels could become more expensive or less reliable.
<h2 id="capital-raising-risk-not-collapse-risk">Capital Raising Risk, Not Collapse Risk</h2>
Arkham said investors may have sold STRC because they doubt Strategy’s ability to keep paying dividends, worry about future capital raises, or see better returns elsewhere.
“The price of STRC simply reflects the market’s view of how likely Saylor is to continue paying dividends,” Arkham said.
That makes the STRC move a test of investor confidence in Strategy’s capital structure. The preferred stock does not appear to pose an immediate solvency threat, but it could affect how investors view the company’s ability to issue more securities in the future.
Also Read: <a href="https://yellow.com/news/strategy-lost-more-money-on-bitcoin-in-one-quarter-than-most-companies-make-in-a-decade" rel="noopener noreferrer nofollow">Strategy Lost More Money On Bitcoin In One Quarter Than Most Companies Make In A Decade</a>
If investors conclude that new capital is being used mainly to support earlier dividend-paying instruments, demand for future Strategy-linked securities could weaken. That would matter for the company’s Bitcoin strategy because continued accumulation has relied heavily on repeated access to capital markets.
Arkham said STRC’s decline will not kill Strategy, but warned it could hurt the company over time.
“To keep STRC afloat, Saylor needs to keep paying $1.2 Billion per year in dividends,” Arkham said.
<h2 id="bitcoin-strategy-faces-a-credibility-check">Bitcoin Strategy Faces A Credibility Check</h2>
The STRC pressure comes at a sensitive time for Bitcoin treasury companies. Strategy remains the most visible corporate Bitcoin holder and has turned its balance sheet into a proxy vehicle for investors seeking leveraged exposure to BTC.
That position has made Saylor one of the most influential figures in corporate Bitcoin adoption. But it has also made Strategy’s financing structure a recurring focus for skeptics who argue that the model depends on continuous investor demand for new equity, debt or preferred securities.
The STRC depeg does not prove that demand has broken. But it shows that investors are beginning to price the risk that some parts of Strategy’s capital stack may not behave like near-risk-free income products.
For Bitcoin markets, the key question is whether pressure in STRC remains isolated or begins to affect broader confidence in Strategy’s ability to raise capital. If future issuance becomes harder, Strategy’s pace of Bitcoin purchases could slow.
That is why the Luna comparison is only partly useful. STRC does not create the same mechanical collapse risk. But it does expose a different vulnerability: Strategy’s Bitcoin machine depends not just on BTC prices, but on the market’s willingness to keep financing the structure around them.
Read Next: <a href="https://yellow.com/news/strategy-biggest-loss-10b-saylor-bitcoin" rel="noopener noreferrer nofollow">Strategy Dives To Its Biggest Loss Ever Above $10B, Saylor Insists Bitcoin Is Fine</a>

Strategy's Bitcoin Machine Is Quietly Showing Its First Real Crack

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