# This Week in Crypto: Strategy’s Bitcoin bet faces a new test > Strategy's STRC preferred stock falls below par value, Australia's crypto Travel Rule takes effect 1 July, SpaceX settles after its record IPO debut, and News · 4 min read Published 19 June 2026 This week in crypto, attention turned to Michael Saylor’s Strategy as questions emerged around the sustainability of its latest Bitcoin-backed income products. While the company remains one of Bitcoin’s strongest corporate advocates, investors are closely watching how its growing financial ecosystem performs during periods of market volatility. Elsewhere, Australia prepares to implement new crypto transfer requirements, SpaceX continues to dominate financial headlines following its record-breaking public debut, and Pudgy Penguins is refining its gaming strategy as it expands beyond NFTs. Strategy’s [Bitcoin](/buy/btc/) accumulation strategy came under increased scrutiny this week after its variable-rate perpetual preferred stock, known as STRC or "Stretch", continued to fall below its intended US$100 par value. The product was designed to generate an annual dividend yield of 11.5% while giving investors exposure to Strategy’s broader Bitcoin-focused business model. However, recent declines have pushed its effective yield above target levels, creating concerns about how the company balances shareholder returns with its aggressive Bitcoin acquisition strategy. Analysts noted that Strategy’s ongoing Bitcoin purchases may be contributing to pressure on the product. As the company continues allocating significant capital to expanding its Bitcoin reserves, investors are questioning whether sufficient cash flow remains available to comfortably support dividend obligations. A prolonged disconnect between the product’s market price and its target value could force the company to prioritise yield support over future Bitcoin purchases. At the same time, Strategy's common stock also experienced weakness as Bitcoin traded in a more volatile environment. Despite this, Michael Saylor remains unwavering in his long-term outlook. Speaking this week, Saylor argued that Bitcoin does not require staking, inflation mechanisms, or protocol-level yield generation to create value. Instead, he believes returns should come from financial products built around Bitcoin itself. Outside of crypto, markets continue to digest the extraordinary debut of SpaceX on public markets. One week after launching in the largest IPO in history, the company remains one of the most closely watched stocks globally. SpaceX raised approximately US$75 billion through its listing and saw its share price surge from an IPO price of US$135 to a high above US$225 within days. At its peak, the company briefly surpassed a US$2 trillion valuation, reflecting enormous investor demand for exposure to Elon Musk’s space and satellite communications business. Although the stock has since pulled back from its early highs, it remains significantly above its listing price. Investors are now shifting focus toward upcoming share unlocks, which will allow employees and early investors to sell portions of their holdings. Future earnings reports, Starship development milestones and continued growth of the Starlink network are expected to be key drivers of market sentiment as SpaceX begins life as a publicly traded company. Closer to home, Australian crypto exchanges are preparing for the final implementation of the country's expanded Travel Rule requirements, which become fully effective on 1 July. The new regulations require crypto exchanges and other digital asset service providers to collect and verify information about both parties involved in cryptocurrency transfers. Providers must maintain records covering sender and recipient details, wallet information and transaction identifiers. Importantly, the rules apply regardless of transaction size, meaning even small transfers fall within the scope of the framework. For Digital Surge customers, the changes will take effect from 22 June 2026. Users may be asked to provide additional information when transferring cryptocurrency between Digital Surge and external wallets or exchanges. However, normal trading activity and day-to-day account functions will continue to operate as usual. The introduction of these requirements aligns Australia with international anti-money laundering standards and reflects the broader trend toward increased regulatory oversight across the crypto industry. In the Web3 sector, [Pudgy Penguin](/buy/pengu/)s announced it will discontinue development of its mobile game Pudgy Party and redirect resources toward its broader metaverse-style experience, Pudgy World. Pudgy Party launched in August 2025 and attracted more than one million downloads across mobile platforms, demonstrating strong community engagement. Despite this success, the team has decided to consolidate its gaming efforts around a single flagship product as the brand expands beyond NFTs into toys, licensing, entertainment and gaming. Pudgy World, which launched earlier this year, offers a browser-based virtual environment featuring quests, mini-games and social interactions across a series of themed locations. The experience was deliberately designed to appeal to mainstream gamers by minimising visible blockchain elements and focusing on gameplay first. By concentrating resources on a single ecosystem, Pudgy Penguins hopes to strengthen its position as one of the leading consumer-facing brands emerging from the NFT sector. As the week comes to a close, crypto markets remain focused on the balance between innovation and sustainability. Strategy’s evolving Bitcoin-backed financial products are testing new models for institutional adoption, while regulatory frameworks continue to mature across major jurisdictions. Combined with growing convergence between traditional finance, technology and Web3, the industry appears to be entering a phase where long-term infrastructure and business models may become just as important as price movements themselves. **More news stories circulating the block:** - Anthropic suspends Fable 5 access - Aztec Network exploited - Binance faces EU exit - BOJ raises rates to 30-year high About the editorial team The Digital Surge Editorial Team Our editorial team writes and reviews Digital Surge’s news, insights and crypto guides, pairing plain-English explanations with the practical experience of running an [Australian cryptocurrency exchange](/about-us/). We keep every article accurate, current and easy to act on. [Read our editorial guidelines ›](/editorial-guidelines/) News & Insights ## More from News [News This Week in Crypto: ASIC extends digital asset licensing relief ASIC extends digital asset licensing relief, Strategy faces funding pressure, US lawmakers question AI investing, and Base resumes after an outage. 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