apxUSD Falls Below $1 as Bitcoin Nears $63,000

Apyx’s apxUSD, a synthetic dollar token backed by a basket of preferred shares, dropped below its $1 reference on June 4 as Bitcoin traded near $63,000. Price reached as low as $0.93 and the token exchanged around $0.9176 on roughly $74.6 million in 24-hour volume. Market data showed a 24-hour range from $0.9094 to $0.9984, and exchange reports noted the token briefly touched $0.93.

The protocol uses Strategy’s variable-rate Series A perpetual preferred stock, STRC, as its main collateral. Apyx routes yield from the collateral stack to apyUSD, its savings asset, and lists overcollateralization, cash and short-term Treasury buffers, cross-market arbitrage and potential hedges as tools to support the peg. Apyx’s documentation warns that apxUSD may trade above or below the $1 reference and flags liquidity risk for users who acquire the token through decentralized exchange swaps.

STRC has a $100 stated amount and a cash dividend rate set at 11.50% annualized, with the rate adjusted monthly to encourage trading near par. A Form 8-K filed June 1 disclosed that Strategy sold 32 BTC between May 26 and May 31 for about $2.5 million to fund preferred distributions, and reported holdings of 843,706 BTC as of May 31. The preferred securities carry no collateral claims on Strategy’s Bitcoin and their market price can move independently of the company’s treasury.

Minting and redemption of apxUSD are limited to authorized institutional participants. Redemptions are settled in USDC while the underlying preferred equity remains outside the redemption flow. Apyx’s FAQ notes that apyUSD exits follow an asynchronous model with an approximate 30-day cooldown, creating potential timing and liquidity constraints for holders.

On-chain exposure is concentrated in a small number of DeFi venues. Pendle holds about $118.2 million in active apxUSD exposure, roughly 64.6% of listed active TVL, and Curve holds about $44.6 million, or 24.4%. A smaller position exists on Morpho Blue at about $751,647. The Curve apxUSD/USDC pool registered about $48.5 million in 24-hour volume. Price moves toward $0.93 change pool balances, increase slippage and alter fixed-yield assumptions and collateral valuations for parties treating apxUSD as cash.

Market participants are watching several indicators: STRC’s market price against its $100 stated amount, the composition and size of Apyx’s reserve mix, apxUSD/USDC liquidity depth on Curve and other venues, exposure and activity on Pendle and lending platforms, and Strategy’s upcoming dividend-rate decisions.