YouTuber Coffeezilla has raised concerns about the strategy’s bitcoin-backed STRC stock.

Stephen Findison, popularly known as YouTuber Coffizilla, has raised questions about Strategic Preferred Stock (STRC), whose trading has various problems that could lead investors to view it as a bank-like or money market product.

STRC is a preferred equity security backed by strategic large treasuries with indirect bitcoin exposure. The device promises investors a double-digit annual yield, with the company channeling revenue into further Bitcoin purchases.

According to the company's claims, Stretch reached $5 billion in cumulative revenue in seven months, surpassing the early growth trajectory of products such as Apple's iPhone. Strategy leadership described the offering as one of the biggest financial engineering efforts the firm has attempted.

However, in an April 16 video, Cofizilla argued that promotional materials and comments surrounding STRC emphasize money market-like stability and recurring income, which could obscure its equity risk profile.

“If you think back to the collapse of Terra/Luna, it was a stable coin, an algorithmic stable coin, that was pegged to the dollar until suddenly it wasn't, and everybody suddenly lost their money,” Cofizilla said.

“But before that, it gave about 20% returns. People thought it couldn't fail, and so it goes for many of the most popular financial engineering projects over time,” he said.

According to the online analyst, unlike bank deposits or money market funds, STRCs do not offer principal protection or redemption guarantees, and returns are dependent on the issuer's performance and market conditions, including Bitcoin price movements and a strategy to sustain dividend payments over time.

Cofizilla pointed to marketing that emphasized simplicity and accessibility, including a message aimed at retail investors and comparisons with savings accounts. This framing may cause some investors to underestimate equity and credit risks, he said.

“I wouldn't even call it a Ponzi scheme, although I think you can make some comparisons. In fact, I think they describe a lot of dangers in the fine print,” he emphasized. My whole problem is that they are leading people like the Pied Piper with such ridiculous ideas. If not their business is money market and banking.

Coffeezilla has also raised questions about how the product is financed. The strategy's massive Bitcoin holdings generate no cash flow, meaning roughly 11% of payouts must be funded by reserves, new financing, or Bitcoin sales.

All three strategies are dependent on continued market strength, and a Bitcoin liquidation could put additional price pressure on the market.

Kofizilla's video drew mixed reactions from members of the crypto community.

Some defenders maintain that STRC is a legitimate, albeit high-risk, financial instrument tied to Bitcoin's performance and market confidence. They argue that it is not inherently fraudulent, but instead reflects a strategic bet that Bitcoin's future returns are approximately 11% higher than what it pays investors.

Coffizilla's statement called it “character assassination.”

ZachXBT said the hostility to Coffeezilla's comment reflects a misunderstanding among some Bitcoin supporters, arguing that it goes against Bitcoin's ethos of financial freedom.

He added that he recommends avoiding retail-oriented products that advertise around 11% of the product.

Because Coffeezilla shared a different opinion than you and the immediate response is hostility tells me all I need to know.

Bitcoin was supposed to be about freedom but maxies like you want to censor it.

I advise my followers to stay away from a product…

— ZachXBT (@zachxbt) April 16, 2026