Here’s another refined rewrite with a tighter, more editorial tone:
Benchmark analyst Mark Palmer says comparisons between STRC and Terra’s UST mischaracterize the instrument, arguing that Strategy’s preferred stock is a dividend-paying equity security backed indirectly by bitcoin rather than a fixed peg that can break.
Strategy’s STRC shares have fallen to record lows in recent days, reviving comparisons to Terra’s UST stablecoin, whose 2022 collapse wiped out roughly $40 billion in value.
While the parallel has gained traction on social media, Benchmark Research says it overlooks key structural differences.
The comparison stems from two surface-level similarities. STRC is designed to trade near $100 but dropped to an intraday low of about $82.53 last week before recovering to around $88.65 on Monday—roughly 11% below its target level.
Critics have labeled the move a “depeg,” borrowing terminology from stablecoins that lose parity with $1. STRC also carries an 11.5% dividend yield, drawing comparisons to Terra’s Anchor protocol, which once offered unsustainably high returns before its collapse.
However, Benchmark-StoneX’s Mark Palmer rejected that framing, stressing that STRC is not a stablecoin.
Unlike stablecoins, which are designed to maintain a fixed dollar peg, STRC is a preferred equity instrument intended to trade near $100 without a guaranteed anchor—meaning it cannot technically “depeg.”
Palmer said Strategy’s aim is to support trading near $100, not guarantee it, adding that recent price action reflects a “market-driven reset in required yield” rather than structural failure.
He contrasted this with Terra’s UST, which relied on an algorithmic mint-and-burn system tied to LUNA and lacked hard asset backing. Once confidence broke, the mechanism unraveled and both tokens collapsed.
STRC, by contrast, has no reflexive stabilization loop and is indirectly backed by Strategy’s bitcoin holdings, which the company says total 847,363 BTC worth about $54.5 billion.
That said, the decline has impacted Strategy’s capital-raising mechanism. When STRC trades above $100, the company issues shares to fund additional bitcoin purchases; below that level, issuance slows or stops, which has contributed to a recent pause.
Palmer noted that while efficiency has weakened, this is distinct from any suggestion that Strategy’s model is impaired.
Benchmark also reaffirmed its $570 price target on Strategy’s common stock (MSTR), well above its recent peak of about $457 in October, even as shares fell 2.8% to $109 on Monday for a fifth straight decline.
