Bitwise Says STRC Drop to $88 Signals Crypto Bottom, Not Strategy Crisis
Updated
Updated · CoinDesk · Jul 2
Bitwise Says STRC Drop to $88 Signals Crypto Bottom, Not Strategy Crisis
3 articles · Updated · CoinDesk · Jul 2
Summary
STRC fell to $88 from its intended $100 par as bitcoin slipped below $60,000, but Bitwise said the selloff looks like late-cycle deleveraging rather than a liquidation warning for Strategy.
Bitwise argued Strategy remains well capitalized, with about $52 billion in liquid assets against roughly $7 billion of debt and $2.55 billion in cash covering about 17 months of preferred dividends and interest.
Strategy’s new framework stopped automatic support for STRC’s price and instead allows selective bitcoin sales, preferred share repurchases and stock buybacks, making the company a more flexible capital allocator.
That shift could reduce Strategy’s role as bitcoin’s dominant one-way buyer, with Bitwise expecting institutions such as asset managers, banks, pensions and sovereign funds to drive the next wave of demand.
JPMorgan has taken the opposite view, warning that the policy adds avoidable two-way risk and could increase uncertainty and volatility across crypto markets.