Strategy Slides to Record Lows
Plus, Magic Internet Money falls 50% below peg as Abracadabra declares an emergency.
- Strategy's STRC preferred slides to record lows
- MIM falls 50% below peg as Abracadabra declares an emergency
- Spark, Uniswap, and Sky pool $150M into shared stablecoin FX
- Invesco files a tokenized stablecoin-reserve fund on Superstate
- Aave's Kulechov denies 70%-discount Kraken stake sale
Strategy's STRC preferred slid to record lows near $73, about 25% below its $100 par in two weeks, as the leverage behind the bitcoin-treasury model ran in reverse. Hours later, Abracadabra's MIM fell roughly 50% below its dollar peg and the protocol declared an emergency, hiking rates across every Cauldron and halting incentives.
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Bitcoin Has a Strategy Problem. The Rest of Crypto Doesn't
Thursday's clip is the thesis behind today's split, argued live. Jeff Dorman, CIO of Arca, makes the case that the blockchain innovation layer is growing without Bitcoin — stablecoins, DeFi, and real-world assets — and that owning Bitcoin now is a pure store-of-value bet. The Strategy unwind, in his read, only speeds that separation.
Strategy's STRC Preferred Stock Hits Record Lows as Leverage Cascade Deepens
Strategy's Series A perpetual preferred, ticker STRC, slid to record lows between $73 and $78, about 25% below the $100 par it held two weeks ago. The company's bitcoin holdings stayed intact, which locates the stress in the capital structure. STRC sits senior to the common stock that fell below $100 on Wednesday, extending the funding squeeze the Defiant flagged when STRC first closed at a record low on June 18.
Magic Internet Money Falls 50% Below Peg as Abracadabra Declares Emergency
Abracadabra's MIM stablecoin fell roughly 50% below its $1 peg, and the protocol declared an emergency — hiking interest rates across every Cauldron, halting Curve bribes, and suspending direct incentives. The depeg followed a stretch of thin liquidity and concentrated borrowing against volatile collateral. MIM has slipped from peg in past market-stress episodes, each time around leveraged loans souring faster than the protocol could unwind them.
Spark, Uniswap, and Sky Launch $150M Liquidity Migration to Build Shared Stablecoin FX Layer
Spark, Uniswap, and Sky began migrating $150M in USDS into Uniswap v4 pools, the first step toward what the three call a shared stablecoin FX layer — common liquidity any issuer's coin can route through. Sky supplies the USDS, Spark coordinates the liquidity, and Uniswap v4's hooks handle the routing. The design treats stablecoins as currencies that share one exchange venue.
Invesco Files for Tokenized Stablecoin-Reserve Money Market Fund Built on Superstate Rails
Invesco filed for a tokenized money-market fund whose shares record directly on public blockchains, with reserves structured for GENIUS Act compliance and Superstate serving as sub-transfer agent. It extends a relationship already in place: Invesco took over management of Superstate's tokenized T-bill fund in March. The filing puts a top-tier US asset manager on the same on-chain rails crypto-native issuers built first.
Aave's Kulechov Disputes Report, Says Firm Won't Sell AAVE at '70%' Discount
Aave founder Stani Kulechov rejected a report that the firm would sell a 15% stake to Kraken at a $385M valuation, a figure he called a 70% discount to fair value. He argued that all Aave protocol and GHO stablecoin revenue accrues to the AAVE token, and that the brand and software belong to token holders. Neither Aave nor Kraken has confirmed any talks.
Other Stories Worth Your Time
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Synthetix Governance Votes to Retire sUSD, Pay Holders in Vested SNX — Synthetix governance voted to wind down the sUSD stablecoin and pay holders in vested SNX, retiring one of DeFi's oldest synthetic dollars after repeated peg trouble.
0x Opens Swap API to AI Agents Paying $0.01 Per Request in USDC — 0x opened its Swap API to autonomous AI agents paying $0.01 per request in USDC over the x402 protocol, putting a per-call price on machine-to-machine DeFi access.
Pump.fun Parent Baton Corporation Recruiting CLO at Up to $5M Base Salary — Baton Corporation, the company behind memecoin launchpad Pump.fun, is recruiting a chief legal officer at a $1M-$5M base salary, one of the richest legal-pay bands in crypto.
ENS DAO Delegates Call Foundation Proposal a Governance Attack as Johnson Self-Delegates — ENS delegates labeled a foundation proposal a governance attack after lead developer Nick Johnson self-delegated voting power, reopening the control fight the Defiant covered this week.
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