Apyx’s apxUSD stablecoin slipped to about $0.93 on June 4, a roughly 7% drop from its dollar target, as Bitcoin fell sharply and Strategy’s STRC preferred shares traded below their $100 stated value.

The decline turned apxUSD into a live stress test for one of DeFi’s more unusual stablecoin models. Unlike fiat backed stablecoins such as USDC and USDT, apxUSD is backed by dividend bearing preferred shares from digital asset treasury companies, with Strategy’s STRC serving as a core collateral asset.

Apyx describes itself as the first dividend backed stablecoin protocol. Its model uses preferred shares from public companies to mint onchain dollars, with the dividend income supporting the protocol’s yield layer. apxUSD is the non yield stable asset, while apyUSD captures dividend income through a separate savings token.

The key difference is that apxUSD’s collateral is not simply cash or short term Treasuries. It is exposed to publicly traded preferred equity, which can move with market conditions.

That makes apxUSD’s dollar stability partly dependent on the market value, liquidity, and dividend reliability of assets such as STRC.

STRC is Strategy’s variable rate perpetual preferred stock, structured around a $100 stated amount per share.

Strategy can adjust its dividend rate monthly with the stated aim of keeping STRC near that reference value, but the instrument is not a legally fixed peg product. When STRC trades below $100, the market value of collateral backing apxUSD can weaken.

That is what made the June 4 move notable. Bitcoin dropped below $64,000 during the broader selloff, while STRC traded near the mid $90 range. Because Strategy remains heavily tied to Bitcoin, pressure on BTC can spill into its capital structure and, by extension, into products using STRC as collateral.

Apyx says its system is designed to absorb volatility through overcollateralized issuance, dividend income, cash and Treasury buffers, and arbitrage incentives.

The protocol has previously reported an overcollateralization rate of around 104%, meaning the margin of safety is real but narrow compared with older overcollateralized stablecoin systems.