Overview
- Retail investors who invested in Strategy’s STRC have been attracted by its double-digit returns, yet the stock's volatility has led to mixed feelings.
- On Thursday, STRC reached its lowest price since its launch, undergoing a significant real-world evaluation.
- Some analysts believe the marketing of the product has neglected certain risks that investors may not fully understand.
Common shareholders of Strategy are accustomed to fluctuations, but some investors holding the firm's flagship preferred stock are experiencing this for the first time.
Emery Redenius, a 44-year-old former slot-machine technician, shared with Decrypt that he purchased Stretch (STRC), the Bitcoin-buying firm’s primary dividend product, on its first day of trading.
Since then, the Las Vegas resident has accumulated over $400,000 in STRC and SATA, another preferred stock from asset manager Strive. As he transitions into retirement, Redenius mentioned he might keep his investment for an extended period.
"This was a fantastic addition to my income portfolio," he noted, emphasizing the tax-deferred nature of STRC’s semi-monthly payouts, where taxes are deferred until shares are sold. "I might not pay any taxes on this investment indefinitely."
On Tuesday, STRC dropped to $82.53, as reported by Yahoo Finance, marking the lowest price since its launch last July. The preferred stock has traded at or above its $100 par value multiple times, allowing the Bitcoin firm to raise billions through new share offerings.
Redenius is among numerous everyday investors who have invested in STRC, which currently provides an annual dividend of 11.5%. Michael Saylor, co-founder and executive chairman of Strategy, has compared it to money market funds and FDIC-insured accounts.
Saylor views STRC as a financial innovation, likening it to the introduction of the iPhone. However, while many investors are attracted by the high yields of this experimental asset class, some experts caution that a tightening of funds could catch many off guard.
Decrypt reached out to Strategy for their input.
While some investors remain optimistic about Strategy’s “digital credit” vision, others are beginning to worry due to the stock's recent volatility, especially as it stays below the $100 mark it was intended to trade around.
One anonymous 40-year-old IT professional, who has invested approximately $425,000 in STRC since May, expressed disappointment over his investment, which is currently about $42,000 in the red. Despite his skepticism growing, he continues to hold his position.
"I was always a bit doubtful about Strategy," he admitted. "But the community’s strong belief in its stability led me to briefly think STRC would be different."
This investor mentioned that he sold bonds to purchase STRC and is now closely monitoring Strategy’s activities, especially its recent decision to utilize its cash reserves to repurchase some debt at a discount before attempting to rebuild those reserves.
"Investors like me dislike the instability associated with a limited cash reserve," he added. "It could compel them to sell Bitcoin."
'Millions of Households'
The IT worker’s feelings of regret encapsulate STRC’s underlying trade-offs and highlight the potential challenges that may test the commitment of other retail investors. (The investors quoted in this article have provided evidence of their investments to Decrypt.)
Glenn Cameron, head of institutional services at Onramp Bitcoin, shared with Decrypt that he believes STRC is quite fragile and heavily reliant on Bitcoin’s price. He expressed concern that many investors he has spoken to, including a nurse and a truck driver, might not fully understand the risks associated with STRC.
While he refrained from making definitive predictions, Cameron warned that a significant decline in Bitcoin’s price could lead to substantial losses for investors when they might need income the most.
Although Saylor has described STRC as appealing to risk-averse investors, Cameron pointed out that the product lacks insurance—unlike bank deposits—and is linked to a firm that generates minimal cash and can indefinitely suspend dividend payments without any obligation to return funds to investors.
Nevertheless, Redenius remains unfazed by the stock's price fluctuations. He views STRC’s downturns as opportunities to buy while using derivatives to optimize his entry price and create additional income.
"The issue with those buying at $100 is that they panic when it dips slightly," he said. "You invested at peak value; you should have waited for a discount."
Strategy acknowledges the risks associated with STRC in its prospectus, stating that the preferred stock’s worth and liquidity can be significantly impacted by market volatility, interest rate changes, and the lack of an established trading market, in addition to its subordinate position to the company's debt.
This divide highlights the dual nature of STRC in the market. For many, the enticing yield offers a way to engage with Bitcoin’s institutional acceptance through a familiar investment vehicle.
It has also enabled Strategy to acquire Bitcoin through new methods, beyond incurring debt and issuing common stock. Since STRC’s launch, the firm has raised over $10 billion via share issuance, accelerating its Bitcoin acquisition rate to 846,842 BTC—valued at approximately $53 billion as of now.
Because STRC imposes ongoing costs on Strategy, analysts have occasionally questioned its sustainability, prompting the firm to build cash reserves to assure investors of its ability to continue making semi-monthly payments.
In this context, Strategy sold 32 Bitcoin last month, a decision framed as a means to demonstrate its commitment to managing STRC’s recurring expenses. Although this sale was presented as a calculated capital management choice, it resulted in Strategy's worst weekly performance since November 2022.
We have 32 years of dividend coverage through our $BTC Reserve. pic.twitter.com/qTvQYLweul
— Strategy (@Strategy) June 17, 2026
On Thursday, the common shares of the Bitcoin-buying firm were trading at approximately $110, reflecting a nearly 34% decline over the past month, according to Yahoo Finance. Strategy's stock reached a peak of $457 about 11 months ago, prior to Bitcoin's significant drop from its all-time highs.
At a recent Bitcoin conference in April, Saylor noted that many everyday investors have already engaged with STRC, with retail buyers owning nearly 80% of the preferred stock.
"We estimate that three million households are currently benefiting from STRC," he stated. "Our goal is to empower millions, then tens of millions, and ultimately hundreds of millions of households with a high-yield savings account. It’s a straightforward concept."