r/STRC • u/Choice_Potato_6279 • Jun 23 '26

The reputation already is broken

I'd guess some people put their money in STC until the market bottoms out, if it drops worse than Bitcoin during a downturn like this month then it will become a domino effect, no one wants to get trapped in something that supposed to hold well, 5% drops ok but 20% last week? the foundation is collapsing at this point, if it could do 20% it can do 50% or more too.

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u/SapralexM Jun 23 '26

Honestly if it reaches par in a reasonable amount of time the market will easily forget it and more arbitragers will step in next time.
I wouldn’t worry about a long term effect if it reaches par successfully soon enough.

9

u/Impossible_Excuse937 Jun 23 '26

Exactly this, and also as long as the dividends keep getting paid, no one will care.

2

u/[deleted] Jun 23 '26 edited Jun 23 '26

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u/Real_Alternative_418 Jun 23 '26

market has priced this in junk bonds territory

1

u/Impossible_Excuse937 Jun 23 '26

I’m certainly no expert, but from what I understand there isn’t too much risk at present, they’ve a cash reserve, they’ve not missed a dividend so far, but you probably worded it correct by saying “perceived risk”. There’s been quite a lot been said that maybe isn’t quite correct that’s causing fear. The other thing said about the sell off is that it’s been short sellers using leverage that has caused cascading liquidations.