Strategy’s STRC Drops 13% Below Par as Bitcoin Falls 50%

• STRC funding note sinks over 13% on Bitcoin’s 50% drop since July 2025 launch
• Share issuance halted, Bitcoin purchases cut, and public criticism mount pressure on Saylor’s flywheel model

On June 21, 2026 (UTC), CoinDesk reported that Strategy’s flagship Bitcoin-funding instrument, Stretch (STRC), plummeted over 13% below its $100 par value as Bitcoin tumbled roughly 50% since STRC debuted in July 2025. This record decline sharply intensified public scrutiny and criticism toward Michael Saylor’s capital-raising “Bitcoin flywheel”; market commentators, including Peter Schiff, repeatedly called STRC a “classic centralized Ponzi.”

The STRC sell-off has driven its effective dividend yield above 12.9%, attracting opportunistic yield hunters despite the negative outlook. At the same time, the price discount forced Strategy to halt at-the-market share issuance and significantly slow new Bitcoin purchases. CoinDesk noted that Strategy’s weekly BTC acquisitions dropped to about $100 million in June, down from multi-billion dollar inflows in previous months.

Analysts cited by CoinDesk and Scott Melker on X attributed STRC’s sharp drop mainly to Bitcoin’s price slide and forced selling by leveraged holders, rather than an immediate operational crisis. Despite this, Strategy was compelled to liquidate a small tranche of 32 BTC in early June to support STRC’s rising dividends—the first notable asset sale from its reserves.

Strategy now holds 846,842 BTC in its treasury, yet its capital-raising model—issuing STRC notes to fund Bitcoin purchases and dividends—faces short-term challenges amid slower inflows. Some analysts argue the model remains viable if Bitcoin prices recover, but further funding depends on either a STRC price bounce or renewed optimism in Bitcoin itself, according to CoinDesk.

As of June 21, 2026, 15:09 UTC, Bitcoin (BTC) trades at $64,107.58, with a 0.44% change in 24-hour volume, per CoinMarketCap.