STRC continues to lose its peg amid criticism from KOLs, with expectations that Saylor will sell coins again to push STRC back to face value

BlockBeats News, June 18—STRC continued to decline after opening today and is now trading at $85.9, with a single-day drop of 3.44%. In response, overseas KOLs have raised doubts about the product, pointing out that it was heavily promoted as a safe investment suitable for families, claiming to be better than high-yield savings accounts and almost volatility-free.

Arete Capital partner McKenna further analyzed that the market is currently waiting for typical late-summer volatility and for Michael Saylor to sell Bitcoin. He also predicted that if Saylor eventually sells part of his Bitcoin holdings, it will push STRC back to par value, and the market will then see a return of natural buying interest.

Reportedly, STRC is a preferred share launched by Strategy to raise funds for buying Bitcoin, with a face value roughly pegged at $100. It pays a relatively high dividend, and the yield adjusts based on the price situation, aiming to keep it trading close to par. The significant deviation of STRC from par value indicates that the market is demanding a higher yield and also reflects declining investor confidence in its credit/dividend stability. Strategy previously relied heavily on issuing STRC to finance Bitcoin purchases; if the price of STRC falls below par, issuing new STRC is no longer cost-effective, equating to borrowing at a higher cost. This weakens its "ability to continue buying Bitcoin."