Mark Palmer from Benchmark clarifies that STRC is a dividend-paying equity linked to bitcoin, not a fragile peg.
By Shaurya Malwa|Edited by Stephen AlpherUpdated Jun 23, 2026, 12:29 p.m. Published Jun 23, 2026, 12:14 p.m. 2 min readMake preferred on ShareShare this articleCopy linkX (Twitter)LinkedInFacebookEmailMake preferred on SummaryShow- Strategy's STRC preferred stock, intended to trade around $100, has plummeted to about $82.53, leading to comparisons with the failed UST stablecoin from Terra.
- Mark Palmer from Benchmark stated that STRC is not a stablecoin and never had a fixed value, suggesting the recent decline reflects a market-driven adjustment rather than a "depeg."
- STRC is indirectly supported by Strategy's substantial bitcoin assets, which help fund a mechanism that purchases additional bitcoin when STRC is valued at or above $100; this function has been halted due to the current price drop.
In recent days, Strategy's STRC preferred shares fell to new lows, prompting renewed discussions about its similarities to Terra's UST, a stablecoin that collapsed in 2022, wiping out approximately $40 billion.
Although the comparison is gaining traction on social media, it overlooks the true nature of STRC, according to Benchmark Research.
Two characteristics fuel this comparison: STRC is designed to hover around $100, and it recently dropped to a low of around $82.53 before closing at approximately $88.65 on Monday, which is about 11% lower than its target price.
Some critics have labeled this a "depeg," a term typically used when a stablecoin no longer maintains its $1 value. STRC also offers an annual dividend yield of 11.5%, which is reminiscent of the 20% yield promised by Terra's Anchor protocol before its downfall. This combination of high yield and price decrease triggers recollections of the past failures.
However, Mark Palmer, an analyst from Benchmark-StoneX, emphasized that "STRC is not a stablecoin" in his notes from Monday.
Unlike stablecoins, which aim to maintain a fixed $1 value, STRC never claimed to do so. It is a preferred stock that pays a defined dividend and is designed to trade near $100 without any peg to maintain, making it incapable of experiencing a "depeg" like UST.
“The goal of Strategy is to keep STRC trading close to $100, not to assure it,” Palmer explained. “What has transpired with STRC should be viewed not as a depeg, since something that was never pegged cannot be depegged, but rather as a market-driven reset of yield expectations.”
In contrast, UST was algorithmic, relying on a mint-and-burn mechanism involving its sister token, LUNA, without any solid reserves backing it. Once confidence faltered, the system collapsed, causing both tokens to plummet to nearly zero.
STRC lacks such a self-sustaining mechanism. It is indirectly supported by Strategy's bitcoin reserves, which currently amount to 847,363 coins valued at about $54.5 billion, according to the company on Monday.
The recent decline impacts Strategy's purchasing mechanism, which operates when STRC is at $100 or more. When below this threshold, the process halts — hence the current pause.
Palmer noted that the funding engine's efficiency has decreased, a situation that is distinct from claims suggesting the company's business model is flawed.
Meanwhile, Benchmark maintained its $570 price target for Strategy's common stock, MSTR, which remains significantly above the approximately $457 peak it reached in October. However, the shares have struggled, dropping 2.8% to $109 on Monday, marking a fifth consecutive day of declines.
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CEX Volumes Drop to Lowest Since September 2024 as RWA Perps Hit Record High
CEX Volumes Drop to Lowest Since September 2024 as RWA Perps Hit Record High
In May, combined exchange volumes decreased by 3.45% to $4.41 trillion, marking the lowest point since September 2024. RWA perpetual futures volumes, however, surged by 10.4%, reaching a new all-time peak.
By CoinDesk ResearchJun 15, 2026In May, combined exchange volumes dropped 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 record high.
Why it matters:
In May, combined exchange volumes fell 3.45% to $4.41 trillion, the lowest since September 2024. RWA perpetual futures volumes rose 10.4% against the trend, hitting a new all-time high.
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