Are you having trouble with your BTC strategy?

Since Michael Saylor’s Strategy launched Stretch, its flagship Bitcoin funding vehicle in July 2025, Bitcoin (BTC), has dropped by approximately 50%.

BTC/USD Monthly Chart TradingView

The key takeaways

• Peter Schiff and others argue that STRC behaves like a Ponzi Scheme.
• Others disagree and note that STRC’s fall below $100 par was due to an leverage wipeout.

STRC has been compared by critics to an a “classic centralized Ponzi”

STRC is designed to be traded at a price close to its par value of $100, which allows Strategy to increase capital and buy more Bitcoin. It is trading now at a significant discount. This suggests that BTC is being squeezed.

STRC reached a new record low on Thursday of $82.53, before ending the day at $88.59 – still less than $100.

STRC Daily Chart TradingView

STRC, launched in July 2025 was intended to be traded near par by means of adjustable dividends. The current annualized rate is 11.5%. Proceeds were used to purchase Bitcoin.

This widening of the discount increased STRC’s yield to above 12,9%, and led to a suspension in at-the market share issuance. This could slow down Strategy’s Bitcoin Treasury, which currently holds over 846,000 BTC.

Finance is a field that requires a thorough understanding of the financial world. “flywheel” It is an auto-reinforcing model of business whereby growth in one measure directly contributes to the growth of another.

The criticisms of Strategy’s financing model have been revived by the fact that trading at 13% less than par is a new phenomenon.

Bitcoin critic Peter Schiff describes STRC repeatedly “a classic centralized Ponzi,” It is argued that Strategy must be able to sell Bitcoin or new shares to fund obligations.

Source: XPeter Schiff

DonAlt, a crypto trader. questioned STRC price movement, asking Why the Instrument was “trading like a Ponzi” Its sharp fall below par.

The strategy hasn’t directly addressed the issue in its recent statements. Instead, it continues to position STRC and Bitcoin as preferred securities.

The company is still moving. STRC to a semi-monthly dividend scheduleThe payouts will now be twice per month instead of monthly.

STRC falls as Strategy slows down its Bitcoin purchasing pace

As STRC is trading below its par value, the pace at which Strategy has been accumulating Bitcoins has dramatically slowed.

Add the company 1,550 BTC for $101 million In the week of June 8, another 1,587 BTC for $100 million In the week of June 15th, total Bitcoin holdings reached 846.842 BTC.

These were significant purchases but were much smaller than the weekly Strategy buys made earlier in 2026.

As an example, April is a good month to start. Strategy bought 34,164 BTC for $2.54 billion It is possible to get a lot done in one week. It added a further 4,000 in May. another 24,869 BTC for roughly $2.01 billion. The weekly contributions in June were closer to 100 million dollars each.

This slowdown coincided also with the sale of 32 BTC, a relatively small amount, in value at around $2.5 million. The proceeds were used to pay dividends.

Related: Bitcoin price sets $64.5K week-to-date low as Strategy selling worries return

It was a small sale compared to Strategy’s Bitcoin overall treasury but showed how cash obligations could still force limited BTC purchases when STRC-led financing becomes less efficient.

STRC’s weekly BTC estimations. Source: STRC.LIVE

STRC Drop is Leverage Wipeout, says Analyst

Jesse Myers is the head of Bitcoin Strategy at The Smarter Web Company. He said that STRC’s sale looked like more of a leverage wipeout rather than an deterioration to Strategy’s core fundamentals.

“Strategy is fine,” He said The company added in a blog post published on Thursday that STRC could be paid dividends to shareholders for up to 32 years, provided conditions do not change, and forever if Bitcoin increases by 2% yearly.

STRC’s long stretch near $99–$100 encouraged investors to use heavy leverage, with some assuming the instrument would stay above $95. Margin calls and forced sales accelerated the fall once the price dropped.

According to Scott Melker, analyst, the discount could also appeal to income buyers.

He noted in a post on Sunday that STRC dividends were based not only on market prices but also the liquidation preferences of $100. With an 11.5% rate of dividends, $90 buyers earn approximately 12.8% while $85 buyers earn approximately 13.5%.

Source: X/Scott Melker

STRC is currently offering a return of around 13%. Strategy could announce its dividend rate for the next quarter on June 30. It will also retain other funding options such as MSTR shares and cash to purchase Bitcoin.