Retail investors would be hit hardest if Strategy collapses, says expert

Glenn Cameron, Global Head of Onramp Institutional, has warned that retail investors would be the most affected if a crisis at Strategy were to materialize. In an interview with crypto journalist Laura Shin, Cameron said that 83% of investors in Strategy's perpetual preferred stock (STRC) are retail investors. He added that he constantly receives anxious messages from people in professions like electricians, plumbers, nurses, and truck drivers. Cameron explained that the only investment advice these individuals received came from podcast hosts or the company selling the securities. He noted that retail investors tend to buy high and sell low. In a worst-case scenario where the price of BTC falls below the value of the company's convertible notes and preferred stock, these investors would not receive the returns they were promised for six, 12, or 18 months. Cameron predicted that if prices drop, these investors would likely sell, causing massive reputational damage to Strategy and making future fundraising difficult.