June 2026 has been a brutal month for crypto. Bitcoin keeps falling, dragging altcoins down with it. Now the largest corporate BTC▼$62,574.00 holder is feeling the heat.
At the time of publication, bitcoin (BTC) trades near $62,800, down just 1.5% in the past 24 hours. Earlier this week, BTC dropped to $61,559—its lowest since April and more than 50% below its all-time high of $126,000.
Hot topic: Standard Chartered — Bitcoin Bottom Is Near, Market Enters BTC Buy Zone
Strategy’s preferred stock closed below $95 for the first time in three months, sparking debate over the durability of a model built on leverage to buy bitcoin.
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STRC Trading at a 5% Discount: Normal Behavior or a Warning Sign?
STRC is a perpetual preferred stock with a floating rate and a $100 par value. It’s designed specifically for investors seeking passive income, about 11.5% annually, with indirect bitcoin exposure.
On June 3, the stock closed at $94.65, a 5% discount to par. A built-in protection mechanism automatically increases the dividend yield when the price drops. STRC’s effective yield has now reached 12.15%.
Trader Scott Melker urged calm:
But critics, including economist Peter Schiff, warn of a negative feedback loop. The lower STRC trades, the more Strategy must raise dividends, accelerating cash burn and potentially forcing more bitcoin sales.
Read more: Why Is Bitcoin Falling on June 3? Peter Schiff Predicts BTC Price Drop to $20K
Grayscale: Strategy’s Model Is Under Pressure, Limiting Its Ability to Buy BTC
Grayscale Head of Research Zach Pandl said that “Strategy’s leveraged business model is under pressure, and that has increased volatility for the entire bitcoin market.” In his view, the company’s ability to accumulate new tokens at current share prices, for both STRC and common MSTR, is limited.
Pandl added that in the long run, “less bitcoin on leveraged balance sheets and more on diversified corporate balance sheets would be a positive” for the ecosystem’s health.
Read more: Zcash Price Crashes 45% After Infinite Minting Bug Disclosure
Saylor Blames AI Capital Rotation, Not Bitcoin Fundamentals
Strategy co-founder Michael Saylor linked the current drop to the unprecedented scale of AI funding.
Indeed, U.S. spot bitcoin ETFs have not recorded a single day of positive inflows since May 15, and yearly net flows have turned negative.
Still, Strategy common stock fell 15% over the past five trading days to $128. Total crypto market capitalization has dropped to $2.20T. Liquidations over 24 hours reached $1.74B, with $635M coming from long bitcoin positions.
Learn more: Can Bitcoin Crash to $20K in 2026? What Could Trigger a Historic Crypto Market Collapse
