Bitcoin (BTC) has fallen roughly 50% since Michael Saylor's Strategy launched Stretch (STRC) in late July 2025.
STRC, intended to trade near its $100 par value, plunged to a record low of $82.53, closing at $88.59, intensifying criticism that it resembles a Ponzi scheme. Critics like Peter Schiff assert that STRC's success hinges on continuous capital influx, yet others argue that the downturn reflects a leverage wipeout rather than fundamental issues.
The widening discount has effectively increased STRC's yield above 12.9%, impacting Strategy's Bitcoin acquisition pace. Recent purchases have markedly decreased from significant accumulations earlier in 2026, with June's additions averaging just $100 million.
The situation raises questions about Strategy's funding model, especially given the recent shift to a semi-monthly dividend schedule.
Analysts like Jesse Myers suggest that leverage practices contributed to STRC's decline, noting that if conditions remain stable, STRC can sustain dividend payments for decades. Current yields at around 13% may prompt increased interest from income-focused investors as management seeks to navigate turbulent market conditions.
