STRC, originally positioned as a low-volatility income vehicle trading around $100, has seen its value plummet, eroding investor trust.
By James Van Straten|Edited by Jamie CrawleyUpdated Jun 25, 2026, 3:48 p.m. Published Jun 25, 2026, 3:45 p.m. 3 min readMake preferred on ShareShare this articleCopy linkX (Twitter)LinkedInFacebookEmailMake preferred on SummaryShow- Strategy possesses enough U.S. dollar reserves to fulfill dividend commitments for nearly 10 months, indicating that current prices do not jeopardize those payments.
- MSTR saw an 8% drop to $86 on Thursday, marking its lowest value since February 2024, while STRC fell to $75, reflecting a 25% discount from its intended $100 par value.
- Alexander Blume, CEO of Two Prime, stated that frequent alterations to Strategy's plans, coupled with the underwhelming performance of MSTR and STRC, have diminished retail investor trust.
Despite traders' concerns about the declining stock price of Strategy (MSTR), which fell 8% to $86 on Thursday, the more pressing issue appears to be the erosion of investor confidence rather than an impending company collapse.
Michael Saylor's bitcoin firm still has a 10-month cash reserve to meet STRC's dividend obligations, suggesting that the real concern lies in how this situation has impacted investor sentiment.
STRC, intended to maintain a $100 par value, has plummeted to $75, while MSTR’s value has dropped to $86, its lowest since February 2024.
The company's enterprise multiple to net asset value (mNAV) now stands at 1.05, a significant decline from the premium that previously supported its bullish narrative.
Although STRC is trading significantly below its $100 target, Strategy still has adequate dollar reserves to meet dividend obligations for roughly 10 months, with current pricing not posing a threat to those payments.
However, the fact that STRC is trading below its peg hampers the efficiency of Strategy's bitcoin acquisition and funding process, as the company can no longer issue preferred shares under favorable terms, as noted by Benchmark analyst Mark Palmer. This does not imply that the business model is failing.
Ultimately, the critical issue revolves around trust rather than financial solvency. STRC was initially marketed as a stable income product meant to trade near $100, but its significant drop has shaken investor confidence.
According to Alexander Blume, CEO of Two Prime, the primary damage is to credibility, rather than the firm's ability to continue paying dividends. Trust may be what prevents STRC from regaining its $100 par value.
Michael Saylor's frequent shifts away from his declared strategies have severely impacted investor trust, leading to a significant downturn in the Strategy (MSTR) ecosystem, Blume communicated to CoinDesk on Thursday.
"In markets, especially with a retail-focused investor base, trust surpasses any spreadsheet or logical analysis," Blume, who leads the SEC-registered bitcoin-focused investment adviser, mentioned in a Telegram message.
"Saylor's continual adjustments and the disappointing performance of both STRC and MSTR have shattered that trust."
Blume has been raising alarms for months. In March, while STRC was experiencing initial momentum, he cautioned: "There's no free lunch; a product offering returns above 6% over Treasuries must entail additional risk."
This risk has now become evident, disproportionately affecting retail investors.
"Paradoxically, the human traits of arrogance and emotion, along with the allure of a charismatic leader, are what Bitcoin's algorithmic design sought to shield individuals from," Blume remarked. "Saylor's motivations do not align with those of retail investors. Regrettably, it is the retail investors, who were sold STRC as a retirement income product and MSTR as an enhanced bitcoin investment, who are bearing the consequences."
While Blume refrained from forecasting a complete collapse, he indicated that Strategy appears "highly unlikely" to act as a significant buyer of bitcoin in the near future.
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CEX Volumes Decline to Lowest Since September 2024 as RWA Perpetuals Reach Record Highs
CEX Volumes Decline to Lowest Since September 2024 as RWA Perpetuals Reach Record Highs
In May, total exchange volumes decreased by 3.45% to $4.41 trillion, the lowest level since September 2024. RWA perpetual futures volumes increased by 10.4% against this trend, achieving a new all-time high.
By CoinDesk ResearchJun 15, 2026In May, total exchange volumes decreased by 3.45% to $4.41 trillion, the lowest level since September 2024. RWA perpetual futures volumes increased by 10.4% against this trend, achieving a new all-time high.
Why it matters:
In May, total exchange volumes decreased by 3.45% to $4.41 trillion, the lowest level since September 2024. RWA perpetual futures volumes increased by 10.4% against this trend, achieving a new all-time high.
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