- STRC, a preferred stock promoted by Michael Saylor, fell 5.3% below its $100 par value.
- The crash affected crypto derivatives, causing stablecoins like apxUSD and Saturn sUSDat to de-peg.
- The dividend stock’s instability follows Strategy‘s first Bitcoin sale since 2022, used to fund payouts.
- The company’s securities filing noted BTC sales would fund STRC dividends.
The dividend-paying preferred stock STRC, heavily promoted by Strategy founder Michael Saylor, tumbled dramatically in early June 2026. It traded 5.3% below its $100 par value, demonstrating stark volatility for a product marketed as a stable, high-yield alternative.
Consequently, multiple crypto derivatives mirroring STRC also crashed. Protocols like Apyx and Saturn saw their partially-backed stablecoins, apxUSD and Saturn sUSDat, lose 4.1% and 3.7% of their value respectively. This series of de-pegs exposed the hidden risks within these synthetic financial wrappers.
The underlying trigger was a shift in Strategy‘s bitcoin strategy. The company sold 32 BTC for roughly $2.5 million between May 26 and 31, its first sale since 2022. A filing stated proceeds would fund STRC dividends.
During last month’s earnings call, Saylor said the company would sell BTC to “inoculate the market.” However, the move was quickly followed by a 12% plunge in Bitcoin’s price over the week. Strategy‘s common stock also fell 15% in the same period.
Despite its advertised 11.5% annualized yield, STRC lacks the insurance of traditional savings products. Its market cap had ballooned to over $10 billion this year, more than triple its size at the start of 2026. This week’s turbulence proved that neither its price nor its dividends are guaranteed by the company.
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