Bitcoin (BTC) has fallen roughly 50% since Michael Saylor’s Strategy launched Stretch (STRC), its flagship Bitcoin-funding vehicle, in late July 2025.BTC/USD monthly chart. Source: TradingViewKey takeaways:STRC is acting like a classic Ponzi scheme, argue Peter Schiff and other critics.Other analysts disagree, noting that STRC’s drop below the $100 par is due to a leverage wipeout. Critics say STRC looks like a “classic centralized Ponzi”STRC was designed to trade near its $100 par value, enabling Strategy to raise capital to buy more Bitcoin. The instrument is now trading at a deep discount, suggesting that the BTC buying channel is under pressure.On Thursday, STRC fell to a record low of $82.53 before closing at $88.59, still below the $100 par value.STRC daily chart. Source: TradingViewLaunched in July 2025, STRC was designed to trade near par through adjustable dividends, currently 11.5% annualized, with proceeds used primarily to acquire Bitcoin.The widening discount has pushed STRC’s effective yield above 12.9% and contributed to a pause in at-the-market share issuance. That risks slowing down the capital-raising flywheel behind Strategy’s Bitcoin treasury, which now holds more than 846,000 BTC. In finance, a “flywheel” is a self-reinforcing business model where growth in one metric directly helps grow another, compounding momentum.But trading 13% below par has revived criticism of Strategy’s funding model. Bitcoin critic Peter Schiff has repeatedly described STRC as “a classic centralized Ponzi,” arguing that it depends on Strategy’s ability to raise fresh capital through new share sales or sell Bitcoin to meet obligations. Source: X/Peter SchiffCrypto trader DonAlt also questioned STRC’s recent price action, asking why the instrument was “trading like a Ponzi” after its sharp move below par.Strategy has not directly addressed this in recent statements, instead continuing to present STRC as preferred equity supported by its Bitcoin-focused treasury strategy.However, the company has moved STRC to a semi-monthly dividend schedule, with payouts now designed to occur twice a month rather than monthly. Strategy’s Bitcoin buying pace slows as STRC slumpsThe pace of Strategy’s Bitcoin accumulation has slowed sharply as STRC trades below par value.The company added 1,550 BTC for $101 million in the week ending June 8 and another 1,587 BTC for $100 million in the week ending June 15, lifting total holdings to 846,842 BTC. Those were meaningful purchases, but they were far smaller than Strategy’s weekly buys earlier in 2026.For instance, in April, Strategy bought 34,164 BTC for $2.54 billion in a single week. In May, it added another 24,869 BTC for roughly $2.01 billion. By contrast, June’s weekly additions have been closer to $100 million each.The slowdown also coincided with a small but notable 32 BTC sale earlier in June, worth about $2.5 million, to help cover dividend obligations. Related: Bitcoin price sets $64.5K week-to-date low as Strategy selling worries returnThe sale was tiny compared with Strategy’s overall Bitcoin treasury, but it showed that cash obligations can still force limited BTC sales when STRC-led funding becomes less efficient.STRC-led weekly BTC buying estimates. Source: STRC.LIVEAnalyst says STRC drop is a leverage wipeoutThe STRC sell-off looked more like a leverage wipeout than a deterioration in Strategy’s fundamentals, according to Jesse Myers, head of Bitcoin strategy at The Smarter Web Company.“Strategy is fine,” he said in a Thursday post, adding that the company could pay STRC dividends for 32 years if conditions remain unchanged, and indefinitely if Bitcoin appreciates at roughly 2% annually.STRC’s long stretch near $99–$100 encouraged investors to use heavy leverage, with some assuming the instrument would stay above $95. Once the price slipped, margin calls and forced selling accelerated the decline.The discount may also attract income buyers, according to analyst Scott Melker. In a Sunday post, he noted that STRC’s dividends are based on the $100 liquidation preference, not the market price. At an 11.5% dividend rate, buyers at $90 earn about 12.8%, while buyers at $85 earn roughly 13.5%.Source: X/Scott MelkerAt current prices, STRC offers an effective yield of about 13%. Strategy may announce its next dividend rate on June 30, while retaining other options, including MSTR share issuance and cash reserves, to fund its Bitcoin purchases.