Strategy’s Leverage Machine Spreads

Bloomberg reports that a few crypto startups – Apyx, Buck, and Saturn – are issuing yield-bearing stablecoins backed largely by Strategy’s Stretch (STRC) preferred shares instead of safer assets like cash or T-bills. These tokens promise double-digit yields because Stretch itself pays a high dividend, but that also means the whole setup is tied back to Strategy’s (MSTR) financial health and, indirectly, bitcoin’s price. Read more →

In relation, a new report from Protos argues that growing STRC issuance may also be giving hedge funds more reason to short MSTR, since each new preferred share adds to Strategy’s long-term cash obligations and can increase expectations of future common-stock dilution.

StarkWare, a blockchain developer that builds zero-knowledge technology, is cutting staff and reorganizing into two units – one focused on revenue-generating applications, the other on Starknet development – CEO Eli Ben-Sasson announced Monday. Ben-Sasson said the company had become "simply and sadly too big" and needed to return to "startup mode" to accelerate product-market fit. The restructuring comes as Starknet revenue has collapsed more than 99% from its peak, falling from roughly $6 million monthly to approximately $48,000 in April 2026. Read more →

The Trump family’s crypto venture, World Liberty Financial Inc. (WLFU), is facing an investor revolt that includes billionaire backer Justin Sun, who accused the project of secretly building controls that let insiders freeze token holders’ funds. Sun, who invested $75 million in WLFI tokens, accuses the company of illicit practices after his tokens were frozen. Grifters all around. Read more →

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