Strategy Variable Rate Perpetual Stretch (Derivatives) (STRC)

$STRC and $SATA absolutely crushed it on Thursday.

We are watching a single preferred equity vehicle pull 21x the daily trading volume of an entire legacy powerhouse ETF.

The sheer scale of this volume becomes undeniably clear. https://t.co/35hNciUbrx

When it comes to $STRC, @willreeves, CEO of Fold, does not hold back.

These preferred shares were marketed like a savings account or a money market product.

The pitch said institutional fixed-income buyers, stranded in bonds, would scoop them up in the hunt for higher yields.

Reality looks very different, with over 80% of holders being retail.

And now the shares are down 25%.

That gap between the marketing and who actually bought them is how you completely lose trust with your investors.

Strategy built its reputation on transparency, and Reeves says the last few months have tarnished that track record.

He also sees a second-order effect as yield seekers are leaving DeFi for these preferreds.

With the most degenerate borrowing in DeFi to buy even more.

In terms of what's next, Will sees a core cohort that just wants yield and accepts the principal risk.

But money managers recommending these to retirees?

Reeves thinks that gets a serious damper for a long while.

Over the last two weeks, the m