A senior executive at Onramp Institutional has issued a stark warning about the concentration of retail investors in Strategy’s perpetual preferred stock (STRC), arguing that a sharp decline in Bitcoin’s price could trigger a financial crisis for ordinary holders and lasting reputational damage for the company. In an interview with crypto journalist Laura Shin, Glenn Cameron, Global Head of Onramp Institutional, revealed that 83% of STRC investors are retail buyers, including electricians, plumbers, nurses, and truck drivers.
Cameron explained that many of these individuals purchased the security based on advice from podcast hosts or the company itself, often without professional financial guidance. He fears that if Bitcoin were to drop below the combined value of Strategy’s convertible notes and preferred stock, these investors would not receive the returns they were promised. “The only investment advice these individuals received came from podcast hosts or the company selling the securities,” Cameron said, adding that a wave of panic selling would not only harm the holders but also make future fundraising significantly harder for Strategy.
Strategy, formerly MicroStrategy, has built the world’s largest corporate Bitcoin treasury—now exceeding 200,000 BTC—by issuing a mix of convertible notes, equity, and the perpetual preferred shares. STRC pays an 11.5% annual dividend but has no maturity date, making it highly sensitive to interest rate shifts and the company’s underlying asset value. In a liquidation, preferred holders rank above common shareholders but below debt holders, a nuance Cameron says many retail investors fail to grasp.
A separate commentary from Jiang Zhuoer, CEO of the Chinese mining pool BTC.TOP, pushed back against speculation that Strategy might be forced into large-scale Bitcoin sales. Responding to on-chain data showing roughly 45,000 BTC leaving a Fidelity custody wallet, Jiang argued that Strategy’s debt equals only about 5% of its assets, a ratio that would rise to just 10% even if Bitcoin fell to $30,000. He maintained that the company is unlikely to break its “never sell” image, while defending STRC’s structure: selling the oldest, cheapest Bitcoin can generate accounting profits to fund dividends, and fresh STRC sales continue to add new Bitcoin. As long as purchases outpace sales, Strategy remains a net buyer. However, other participants in the discussion warned that a prolonged bear market could swell interest bills and force larger sales regardless of management’s intentions.
The debate underscores a wider vulnerability in the crypto market: the reliance on unsophisticated retail capital for complex instruments tied to Bitcoin’s price. If a crisis at Strategy were to occur, the loss of trust could spill over to other companies that have adopted the corporate treasury playbook and potentially reduce institutional leverage for Bitcoin purchases. At the time of writing, Bitcoin traded near $63,400, down nearly 10% over the past week, and regulatory scrutiny of crypto-linked financial products continues to intensify.
