Everyday Savers Bet Big on Bitcoin Giant Strategy's STRC—Now It's Falling
Strategy’s STRC preferred stock has drawn many retail investors with an 11.5% annual yield and a cash-like pitch, but recent volatility has exposed the risks. One retiree built a $400,000+ position and views the semi-monthly payouts as tax-deferred income, while another investor put in about $425,000 and is now roughly $42,000 underwater, saying he feels misled by claims of stability. STRC fell below its $100 target price and has traded as low as $82.53, raising concerns about fragility, especially if Bitcoin drops sharply. Critics note the product has no deposit insurance, dividends can be suspended, and investors sit behind debt. The shares have helped Strategy raise over $10 billion and grow Bitcoin holdings to 846,842 BTC, but they also create recurring payment obligations, prompting cash reserves and even a recent Bitcoin sale to reassure holders. Retail investors reportedly own about 80% of STRC.
