Strategy’s STRC slump prompts Terra comparisons that don’t hold up, says analyst
Benchmark’s Mark Palmer says the comparison misreads what STRC is — a dividend-paying share backed indirectly by bitcoin, not a peg waiting to break.
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Summary
- Strategy’s STRC preferred stock, engineered to trade near $100, has dropped as low as about $82.53, prompting social media comparisons to Terra’s failed UST stablecoin.
- Benchmark’s Mark Palmer argued that STRC is not a stablecoin and was never pegged to a fixed value, calling the recent slide a market-driven reset of required yield rather than a “depeg.”
- STRC is indirectly backed by Strategy’s large bitcoin holdings and powers a funding engine that buys more bitcoin when STRC trades at or above $100, a mechanism now paused as the price remains below that level.
