Bitcoin Strategy's STRC Falls to $82.53, Recovers to $88.65 as Analyst Rejects Terra Comparison

According to Benchmark-StoneX analyst Mark Palmer, Strategy's preferred stock STRC fell as low as $82.53 last week but recovered to $88.65 on Monday, trading 11.3% below its $100 par value. Palmer dismissed comparisons between STRC and Terra's collapsed ecosystem, arguing that STRC is not a stablecoin and is indirectly backed by Strategy's Bitcoin holdings of 847,363 BTC, valued at $54.5 billion.

Unlike TerraUSD, which relied on an algorithmic mechanism without hard reserves, STRC is engineered to trade around $100 par and currently offers an 11.5% annual dividend. Palmer noted that while the product's funding efficiency has declined, this does not indicate a fundamental problem with Strategy's overall model.