Strategy's STRC preferred stock fell to a low of $82.53, far below its target of $100, sparking social media comparisons to Terra's UST stablecoin collapse. Benchmark analyst Mark Palmer argues the parallel is flawed: STRC is not a stablecoin but a dividend-paying preferred stock, indirectly backed by Strategy's massive bitcoin holdings. Unlike UST, which had no reserves and relied on an algorithmic mint-burn mechanism, STRC's price is market-driven, not pegged. The decline reflects a reset of required yield, not a depeg. However, the drop pauses Strategy's bitcoin-buying engine, which only activates when STRC trades at or above $100. Benchmark maintains a $570 price target on MSTR, despite its recent fall to $109.

Key facts

• STRC fell to $82.53, 11% below its $100 target, triggering depeg comparisons to Terra.
• Benchmark's Palmer says STRC is not a stablecoin but a dividend-paying preferred stock.
• STRC is backed by Strategy's bitcoin holdings, unlike Terra's algorithmic UST.
• The 11.5% dividend yield recalls Terra's Anchor 20% yield, but mechanics differ.
• The price drop pauses Strategy's bitcoin-buying engine until STRC recovers above $100.

KeyAudit data perspective