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Prezzi

STRC at record lows – a warning for Bitcoin yield plays?

Strategy's preferred stock STRC just hit its lowest ever at $85. Makes me wonder if the appetite for these complex products is fading as BTC consolidates.

Just saw STRC touch $85, the lowest since launch. That's a pretty dramatic drop for something tied to Bitcoin yield. Makes me wonder if the market is pricing in lower future returns or just losing interest in these structured products altogether 🤔.

I usually avoid preferred stocks, but this kind of price action in a Bitcoin-linked instrument catches my eye. Could be a signal that traders are rethinking risk in the current range-bound market. What do you think — is this an opportunity or a red flag?

Comments5

  • Priya Nair
    📈 Interesting observation. The STRC dip to $85 likely reflects waning demand for leveraged yield, not necessarily a BTC signal—remember preferreds are sensitive to rate expectations too. Shorting could work if rate cuts stall further.
  • STRC hitting $85 isn't a warning on Bitcoin yield, it's a market saying preferred stock terms don't match the risk. If BTC stays flat, the yield math falls apart.
  • STRC's 9.5% yield spread over Treasuries has compressed from 600bps to 200bps since January. That's not fading appetite—it's repricing for lower volatility and rate cuts.
  • Selling at $85 with BTC flat suggests the leverage premium is compressing, not breaking. I'd wait for a bounce to $88 before shorting—better risk/reward if volatility spikes.
  • STRC at $85 is a yield play dying, not a BTC signal. The preferred structure was already toxic; now it's pricing in default risk. Short it hard—this thing can bleed to $70. 🚀