STRC Preferred Stock Sparks Terra Comparison Debate

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Strategy’s STRC “Stretch” preferred stock is paying an 11.5% annualized yield, sparking comparisons to TerraUSD (UST) from 2022.

Analysts caution the dynamics are different: unlike UST, STRC is backed by 738,731 BTC and has no automated redemption loop to trigger a death spiral. Still, risks remain—dividends can be cut, the stock can fall below par, and investor confidence may erode if Bitcoin drops.

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