Everyday Savers Bet Big on Bitcoin Giant Strategy's STRC—Now It's Falling
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- STRC fell to as low as $82.53 on Tuesday, its lowest level since debuting in July, while Strategy's common shares dropped nearly 34% over the past month to around $110.
- Strategy has issued more than $10 billion in STRC shares since the product's debut, enabling the firm to grow its Bitcoin holdings to 846,842 BTC (~$53 billion as of writing).
- Michael Saylor estimated roughly 3 million households — with retail buyers owning about 80% of STRC — have purchased the preferred stock, which carries an 11.5% annual dividend and was compared by Saylor to Apple's iPhone moment.
- Glenn Cameron, head of institutional at Onramp Bitcoin, warned STRC has no insurance like bank deposits and its dividends can be suspended indefinitely with no obligation to make investors whole.
- A 40-year-old California IT worker told Decrypt he accumulated roughly $425,000 in STRC starting in May and is now about $42,000 underwater, saying he was 'tricked' by the community's claims of stability.
- Strategy sold 32 Bitcoin last month to cover STRC's recurring dividend costs — a move the company framed as disciplined capital management but that triggered the firm's worst weekly performance since November 2022.
Why it matters: Roughly 3 million households hold Strategy's STRC for its 11.5% yield, but with shares trading below $83 and no FDIC-equivalent backstop, retail investors face losses that could deepen if Bitcoin drops sharply. One quoted investor is already $42,000 underwater on a $425,000 position, illustrating how the product's promise of money-market-like income rests on Bitcoin's price holding up.
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