The analysts underscored that Strategy's Stretch (STRC) can't technically lose its “peg.”
- Analyst Mark Palmer from Benchmark-StoneX argues that Strategy's Stretch (STRC) is fundamentally different from Terra's collapsed stablecoin ecosystem, despite recent price pressure.
- Palmer emphasizes that STRC is not a stablecoin, lacks algorithmic backing, and is indirectly supported by Strategy's significant Bitcoin holdings, unlike TerraUSD which relied on a 'mint-and-burn' mechanism.
- While STRC is trading below its par value and offering a high dividend, the analyst maintains that this indicates a less efficient funding engine rather than a broken overall model, reaffirming a price target for Strategy.
Topics: Asset types, Institutional adoption, Stablecoins digital cash, Asset manager initiatives
Tags: #strategysstretchstrc #bitcoin #terraluna #stablecoin #benchmark #preferredstock #dividend #peg #algorithmicarbitrage
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