[Digital Today reporter Yoonseo Lee] Strategy's preferred stock STRC has recently weakened, but assessments comparing it to the TerraUSD and Luna collapse are structurally off the mark, an analysis said.

On June 22 (local time), blockchain media outlet Decrypt reported that Benchmark-StoneX's Mark Palmer said in a note that comparing STRC with the Terra ecosystem is fundamentally the wrong approach.

The controversy began with STRC's price fall. STRC slid as low as $82.53 at one point last week and ended trading around $88.65 on June 22. That is about 11.3 percent below its $100 par value. On social media, some reacted by saying, "This stablecoin is 10 percent depegged."

But Palmer drew a line, saying it is wrong to view STRC as a stablecoin in the first place. "STRC is not a stablecoin," he said, adding that it is not supported by an algorithmic arbitrage mechanism and does not rely on confidence in a token structure. TerraUSD sought to maintain a dollar peg through a mint-and-burn structure linked to LUNA without clear reserve assets such as cash or U.S. Treasuries, and when confidence broke down the result was a rapid collapse.

By contrast, STRC was presented as differing in that it is indirectly based on Strategy's bitcoin holdings. Strategy said it held 847,363 bitcoins as of June 22, worth about $54.5 billion at then-current prices. STRC itself is not a product linked 1-to-1 to spot bitcoin, but is run within the company's overall asset structure and fundraising engine.

STRC has been on the market for less than 1 year, but its price has moved in cycles. When STRC trades above $100, Strategy can raise funds through additional issuance and use the proceeds to buy more bitcoin. When it stays below $100, that fundraising efficiency declines.

The market sees that point as a burden. STRC currently offers an annual dividend of 11.5 percent, and some analysts think Strategy could consider raising the dividend rate to help drive a share-price recovery. Strategy has built up cash for 3 straight weeks to increase its dollar holdings, which is read as a signal to preferred stock investors that dividend payments will continue.

Palmer said STRC weakness could slow the pace of fundraising, but does not mean the business model itself has collapsed. "There is a big difference between saying that the efficiency of Strategy's preferred stock fundraising engine has declined and, as some critics claim, concluding that the company's entire model has broken," he said.

The share-price trend remains weak. Strategy's common stock fell 2.8 percent to close at $109 on June 22, extending losses to a fifth straight session. Still, Benchmark maintained its $570 price target on Strategy. That is above the multi-year high of $457 recorded in October last year.

Ultimately, the issue centers less on STRC's price drop itself than on how to interpret the product's structure. If STRC stays below $100, Strategy's capacity to buy additional bitcoin could be constrained. But the report's key point is that it is hard to place it on the same line as a depeg structure in which a dollar peg breaks down, as with TerraUSD.

This stablecoin is now 10% depegged btw https://t.co/ZYACvjnxAl pic.twitter.com/TsMwZgserK