Strategy (STRC) Makes a $100 Million Defensive Move

Strategy announced it sold $100 million to protect the $100 nominal value of its BTC-linked preferred stock, STRC. In response, Solstice launched a tranche product based on this stock. The senior tranche will not begin absorbing losses until the STRC price falls below $47.66. STRC is currently trading at around $95.32, meaning the critical level is around half the current price. The DeFi structure is offering investors a more “safe” tranche promising approximately 7% return on this risk. This is a tangible development in terms of capital defense and risk transfer.

Sell Walls in Bitcoin Fuel Demand for Protection

A sell wall of approximately 1.80 million BTC in the Bitcoin market is hindering a sustained breakout above $65,000. Investors are taking long positions targeting $70,000, while demand for options and similar hedging instruments against a potential drop to $60,000. This indicates that the July CPI data did not alter the defensive stance in the market. The current liquidity distribution and hedging demands are limiting the impact of upward attacks in the short term.

US Inflation Data Meets Market Expectations

US inflation data for July was in line with expectations. Annual inflation was 3.4%, and core inflation was 2.5%. The decline in inflation for the second consecutive month supported stock futures and gold prices. However, the fact that core inflation remains above the 2% target has divided markets regarding the Fed's September policy. The question of whether to cut rates or wait remains unanswered.

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