Bitmex Research has released a report scrutinizing Stretch (STRC), a debt instrument issued by Strategy, which aims to maintain a $100 price through a variable monthly dividend rate. Unlike traditional instruments, STRC's dividend adjustments are based on its market valuation rather than interest rates. The capital from STRC is used to purchase Bitcoin, and Strategy can lower the dividend rate by up to 25 basis points monthly, independent of market conditions. The report raises concerns about the potential accumulation of missed payments, which could impact Strategy's ability to pay dividends on other stock classes. Although marketed as a low-risk investment akin to short-duration U.S. Treasurys, Bitmex argues that STRC involves significantly higher risk.