Strategy (STRC), a stablecoin collateralized by equity shares, has broken its dollar peg and fallen to $0.94 as Bitcoin weakness triggered concurrent declines in STRC stock holdings that back the token's reserve.
The depegging reflects a structural vulnerability in equity-collateralized stablecoins: when both the primary asset and collateral assets decline simultaneously, the reserve cushion erodes faster than in traditional crypto collateral models. STRC's reliance on equity performance created a two-way liquidation risk absent from cryptocurrency-only reserves.
This marks another failure in the equity-backed stablecoin category following previous incidents including sUSDat. The repeated pattern raises questions about whether traditional asset collateralization can maintain peg stability during broad market downturns, particularly when equities and crypto correlations tighten.