Risk 1: Bitcoin Price Shock

  • A flash crash in Bitcoin has limited impact on sUSDat, as STRC is backed ~ 5:1 by Bitcoin, providing a substantial buffer against downside volatility. Furthermore, Strategy has over $2.25B in USD reserves that can pay multi months of dividends.

  • As a public company, Strategy has access to various financial tools to raise capital and fulfill its interest obligations to STRC holders.

  • Furthermore, sUSDat reserve dynamically rebalances toward U.S. Treasuries when market risk increases, helping to limit volatility and maintain stability across the system.

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