MSTR's STRC buys an estimated 7,000 BTC this week, but Two Prime CEO warns ‘no free lunch’

Strategy's (MSTR) perpetual preferred stock, STRC, is estimated to have facilitated the purchase of around 7,000 bitcoin this week, highlighting its role as a major driver for the company's bitcoin accumulation. The instrument currently yields 11.5% and pays monthly distributions, attracting significant investor demand seeking higher returns than Treasuries.

However, Alexander Blume, CEO of Two Prime, cautioned that such high yields come with inherent risks, stating, "There’s no free lunch." He noted that a loss of confidence in MSTR, bitcoin, or the preferred shares themselves could cause the price to drop below its $100 par value, leading to significant damage, even though the structure is designed to trade near par.

Despite the warnings, Blume acknowledged that strong momentum, available funding for interest payments, and high demand suggest the structure is unlikely to face immediate problems. The product's success is evident, with market estimates suggesting MSTR bought over 11,000 BTC in the last two weeks via STRC, and corporate interest, such as allocations from Strive (ASST) and Apyx, is emerging.

(Source：CoinDesk)