Strategy (MSTR) is estimated to have bought around 7,000 bitcoin this week through its perpetual preferred stock product, Stretch (STRC). The pace shows how quickly STRC has turned into a central funding channel for the company’s bitcoin accumulation strategy.
Alexander Blume, chief executive officer of Two Prime, said the structure deserves closer scrutiny. His point was simple: a product yielding more than 6% above U.S. Treasuries is taking on additional risk. In his words, “There’s no free lunch.”
11.5% yield and monthly cash payouts have pulled in demand
Investor appetite for STRC has risen as buyers look for stronger returns. The instrument is currently yielding 11.5% and pays monthly cash distributions. Strategy has described it as something like a short-duration, high-yield savings instrument, with the dividend rate adjusted to keep the shares trading near their $100 par value while limiting price swings.
That structure has accelerated bitcoin purchases. Data cited from STRC.live indicates Strategy has accumulated roughly 34,000 BTC through the product since launch. Over the last two weeks alone, market estimates suggest the company bought more than 11,000 BTC.
Corporate buyers are showing up, though some activity may be symbolic
Interest from companies is also beginning to appear. Asset manager Strive (ASST) recently disclosed a $50 million allocation to STRC. Digital credit firm Apyx said it had purchased an additional 200,000 STRC shares, bringing its total holdings to 255,000 shares.
Blume said STRC was one of the main topics at the recent Strategy World conference, a sign of how central it has become to the company’s capital plan. He added that some corporate purchases of STRC appear, at least for now, to be symbolic or tied to partnership relationships.
Trading near par is the goal, not a guarantee
Blume also pointed to early efforts to build DeFi products on top of STRC. In some cases, those products are being presented as savings-like instruments even though the underlying asset can still be volatile.
STRC is designed to trade close to $100, but Blume said that outcome is not assured. If confidence weakens in Strategy, bitcoin, or the preferred shares themselves, the price could fall below par and cause meaningful damage. That concern is not theoretical: STRC has already traded below $100 on several occasions, after which the company raised the dividend to help push the shares back toward par.
At the same time, Blume said the current setup is supported by strong momentum, available funding for interest payments, and continuing demand for high yield. In his view, the structure is unlikely to run into immediate trouble.