Speaking on June 29, Binance founder Zhao Changpeng said he still could not fully understand Strategy’s preferred stock STRC and said the market overreacted to the company’s sale of 32 Bitcoin to fund dividends.
Binance founder Zhao Changpeng said on June 29 that Strategy’s preferred stock product STRC is too complex and may be hard for investors to assess. Speaking on The Block podcast, Zhao said he had tried several times but still could not fully understand the structure, and argued that using bitcoin as underlying collateral creates tension between its long-term upside case and the volatility that makes it a difficult base for leverage. Zhao said he was not questioning founder Michael Saylor’s credibility and described him as a firm bitcoin supporter. He also said the market overreacted to Strategy’s sale of 32 Bitcoin, arguing that because the company must pay dividends, some Bitcoin sales should be expected.