Would this be considered a depeg or a bank run?
https://blossom.primal.net/f3f309b59d576b4d7e786ce1e3263f918ea26481898034fc95a61fc194c6e1a8.jpg
Nope, it's just a preferred stock that has more sellers than buyers.
If you understood how STRC works you'd know that the $100 target is just for calculating the dividend. It's not a peg. Nothing special happens if it drops to $70 or even $20.
The only thing that happens is they slowly increase the notional return on a share (currently 11.5%).
I suspect it's the shitcoiners who were running a token over the top. I think they've sold their underlying & deployed their capital elsewhere.
This stock has a pretty small addressable market at the moment but it's held by a lot of bitcoiners. If they sold Bitcoin & bought STRC in October they'd be sitting pretty with the dividends covering the drop in unit price. To sell STRC now & buy the Bitcoin or MSTR dip would be a pretty solid move & may be another reason it's dropped 12%.
Who knows - I didn't make that play last year because I still thought bitcoin was in a bull market.
If you understood how STRC works you'd know that the $100 target is just for calculating the dividend. It's not a peg. Nothing special happens if it drops to $70 or even $20.
The only thing that happens is they slowly increase the notional return on a share (currently 11.5%).
I suspect it's the shitcoiners who were running a token over the top. I think they've sold their underlying & deployed their capital elsewhere.
This stock has a pretty small addressable market at the moment but it's held by a lot of bitcoiners. If they sold Bitcoin & bought STRC in October they'd be sitting pretty with the dividends covering the drop in unit price. To sell STRC now & buy the Bitcoin or MSTR dip would be a pretty solid move & may be another reason it's dropped 12%.
Who knows - I didn't make that play last year because I still thought bitcoin was in a bull market.