Solstice launched a tranched Solana product on Strategy’s STRC preferred stock, splitting exposure into senior and junior tokens with a 200% coverage ratio. The structure targets approximately 7% APY for senior holders, who only begin absorbing losses once STRC falls below the $47.66 threshold, while the security currently trades around $95.315. Strategy repurchased 1.15 million STRC shares for approximately $108.6 million in early August by selling Bitcoin, demonstrating its commitment to maintaining the stock price in its $99 to $100 target zone. Junior token holders’ outcomes depend entirely on senior holder behavior: if seniors remain invested during a drop toward the $70s, juniors should stay unaffected, but simultaneous redemptions could trigger approximately 50% losses for junior holders.
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