Arkham: Strategy's STRC depeg is structurally different from Terra/Luna

On-chain analytics platform Arkham has analyzed that while Strategy's (MSTR) preferred stock, STRC, has depegged, the situation is structurally different from the TerraUSD (UST) and Luna (LUNA) collapse. STRC recently fell to $76.2, about 25% below its par value of $100. In a post on X, Arkham explained that STRC is a perpetual preferred stock that pays an 11.5% annual dividend based on its $100 par value. With about 104.89 million shares currently issued, the annual dividend payments amount to approximately $1.2 billion. As of this week, Strategy holds reserves of about $1.4 billion. However, Arkham noted that the dividend payments are not a legal obligation. If the company were to face financial difficulties, it would not be required to prioritize dividend payments to STRC shareholders. Unlike the Terra ecosystem, a drop in the price of STRC does not create a mechanism that would cause Strategy to fail. Therefore, Arkham concluded that comparing the STRC situation to the Terra/Luna incident is not appropriate.