🗞️ STRC Gets a New Playbook
🪙 100% Backed in June
💰 Yield Recap
📈 Weekly Market Review

Two updates this week, both good for Hermetica.

Strategy announced a new Digital Credit Capital Framework that strengthens the ground under STRC. The dividend rate is now 12%, a $2.55 billion USD reserve is in place, and the company has new tools to defend the instrument's price. USDh already earns from STRC, a stronger STRC means a stronger yield base for USDh.

The June attestations are also live. That makes eighteen consecutive months of USDh remaining fully backed, independently attested by Copper. This month closed at 103.92% total backing. Every dollar of USDh in circulation, matched and verified. See the full breakdown.

Bitcoin-backed credit is becoming more structured.

Strategy announced a new Digital Credit Capital Framework to support its preferred securities, strengthen liquidity, preserve long-term Bitcoin exposure, and expand the tools it can use to manage its capital stack. The framework includes a Board-approved USD Reserve policy, a revised STRC dividend policy, repurchase authorizations for Digital Credit Securities and MSTR common stock, and a BTC monetization program.

The framework increases STRC’s regular dividend rate to 12.00%, sets a corporate objective for it to trade over time in a 99-100 target range, and discloses a USD Reserve of approximately $2.55 billion, equal to roughly 17.4 months of current preferred dividend and interest coverage.

The implications carry through to DeFi. A more liquid and better-supported credit instrument strengthens the case for digital credit as an on-chain yield source, including for products like USDh.

If you want exposure to digital credit yield through a stable asset, USDh is already plugged into the new framework. Earn with USDh.

The June 2026 proof of reserves is live.

Every dollar of USDh in circulation was matched by corresponding reserve assets, independently attested by Copper.

In summary, as of the snapshot time:

See the full breakdown of USDh’s backing in the published attestations.

Imagine keeping your assets idle in this economy.

Couldn’t be us. hBTC and USDh clock in every day.

This week’s proof of work is in.

Bitcoin stabilized after last week’s selloff, trading near $61,979 and holding above the ~$60,000 long-term support area. The broader crypto market did not confirm a full risk-on rotation. Total3 recovered with Bitcoin but remains below its major moving averages, leaving Bitcoin dominance nearly unchanged at 58.38% versus 58.92% last week.

Bitcoin remains under pressure from capital rotation out of crypto and into the AI buildout. This week, that rotation became more visible in public markets as Meta shares rose as much as 10% after reports that the company may sell excess AI compute through a new cloud business. The AI trade is also broadening beyond the largest platforms: through June 30, 22 S&P 500 stocks had doubled in 2026, and all but one were AI-linked. For now, marginal risk capital continues to reward AI infrastructure more than crypto beta.

Data Summary:

Simple Moving Averages (SMA) in Figure 1:

Bitcoin is trading above the 7-day SMA at $60,231, but remains below the 30-day SMA at $62,388. That confirms short-term stabilization, but not a broader trend recovery. The 7-day SMA now acts as near-term support, while the 30-day SMA and 200-week SMA form the first resistance zone around $62,300-$62,400. Support levels are $60,231, $60,000, $59,100, $55,000, and $50,000, while resistance levels are $62,300, $62,388, $73,502, and $90,089.

Net inflows totaled $221.72M this week.

The inflow broke a 10-day redemption streak, but it does not yet confirm a reversal. Spot Bitcoin ETFs had lost more than $2.7B over the prior 10 trading sessions and $4.5B in June, their largest monthly outflow since launch. Ethereum ETFs also turned positive, adding $29.08M on July 2 after ending a nine-day losing streak the prior session.

DVOL fell to 39.19% from 42.27% last week as Bitcoin stabilized in the $60,000-$62,000 range. The decline shows less demand for near-term downside protection, even though spot remains below the 200-week SMA.

Covered-call overwriting on Bitcoin ETFs, Strategy-linked securities, and miners continues to suppress upside volatility, with realized volatility still in the high-30s to low-40s range. The options market remains cautious, but less stressed than last week: downside demand has cooled, while upside volatility likely needs a clean reclaim of the 200-week SMA before repricing materially.

The Fed funds range remains at 3.50%-3.75%. The 2-year yield moved toward 4.13%, the dollar weakened, and July hike odds fell, but markets still price a Fed that is not ready to cut. Inflation remains the constraint. May PCE rose 4.1% year over year, core PCE held at 3.4%, and ISM manufacturing prices remained elevated at 73. Softer labor reduces the case for another hike, but inflation keeps Warsh from signaling cuts.

Oil continued to unwind its geopolitical risk premium as Strait of Hormuz traffic improved and U.S.-Iran talks continued, with Brent near $72 and crude heading for a fourth weekly decline. For crypto and rates, the near-term signal is cautiously constructive: lower oil reduces headline inflation risk, weaker labor cools hike pressure, and ETF/risk flows have room to stabilize, but the market is still not back in a full liquidity regime.

Sincerely,
The Hermetica Team