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Peter Schiff says Strategy’s STRC preferred stock fell about 15% below par

Peter Schiff says Strategy’s STRC preferred stock fell about 15% below par

Strategy’s STRC preferred shares traded around $85 versus their $100 par value and hit a record low, with analysts linking the selloff to deleveraging rather than credit deterioration in the digital credit market.

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Fact Check
Peter Schiff's own X posts (@PeterSchiff) directly confirm he said STRC fell to a record low ($82.53–$85.32), roughly 15–17.5% below the $100 par value, and characterized buyers as having lost ~15% of principal. The Defiant independently confirms STRC hit a record low near $84.45, 'about $85,' '15% below its $100 stated value,' and that this squeezes a Bitcoin funding channel. crypto.news corroborates the ~15% below par figure, the $82.53 record low, and the issuance/funding-risk framing. All material elements of the claim are supported by primary (Schiff) and credible independent sources.
Summary

Peter Schiff criticized Michael Saylor after Strategy’s STRC preferred stock fell roughly 15% below its $100 par value, trading near $85 and reaching a record low. STRC fell to as low as $82.50 on June 18, below its expected trading range near $100 par and under its $90 IPO price. In X posts on June 18, Schiff argued investors were misled about the security. Strive CEO Matt Cole said the selloff in STRC and Nasdaq-listed Strive’s SATA reflected deleveraging rather than credit deterioration, a move he said unsettled the digital credit market. Analysts separately attributed the decline to a cascade of leveraged liquidations rather than a standalone fundamental event, said Bitcoin purchases made through STRC were showing about $2.1 billion in unrealized losses, and added that dividend payments can continue. The report said STRC is used to raise funds for Bitcoin purchases, and the widening discount suggests investors are demanding higher yields, a dynamic that could weaken Strategy’s ability to keep issuing the preferred shares to buy more Bitcoin.

Terms & Concepts
  • preferred stock: A class of shares with priority over common stock, typically including dividend preference.
  • par value: The stated face value of a security, such as STRC’s $100 issue price.
  • leveraged liquidations: Forced sales that occur when borrowed positions lose value and lenders or exchanges require positions to be closed.