Strategy STRC depeg deepens fears of Terra-style loop and potential spillover into Bitcoin

Strategy’s STRC preferred stock was trading below its $100 par value, with one report citing a record low near $89 (about 11% under par) and noting that Strategy paused new STRC share sales, narrowing a key funding channel that had supported its Bitcoin accumulation. The report also said retail investors account for roughly 80% of STRC holdings, and that a rival product from Strive was trading near par, pulling capital away ^[1].

Analysts and commentators warned that addressing potential STRC issues could have knock-on effects for Bitcoin-related holdings. One outlet reported analysts were cautious that potential remedies to resolve an STRC depeg could negatively affect BTC and MicroStrategy (MSTR) values ^[2].

Crypto analyst Ali Martinez said STRC’s structure may resemble a “danger loop” seen in the Terra-Luna collapse, pointing to a feedback-loop design that could further strain Strategy’s finances during a prolonged Bitcoin decline. Another report echoed this view, citing Martinez’s concerns about how the preferred stock’s structure interacts with Strategy’s reliance on capital-market products to fund its Bitcoin purchases ^{[3] [4]}.