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

Markets Share Share this article Copy link X icon X (Twitter) LinkedIn Facebook Email Strategy’s STRC buys an estimated 7,000 bitcoin this week, but Two Prime CEO warns ‘no free lunch’ Two Prime CEO Alexander Blume says the high yield product driving the buying surge carries risks despite strong momentum. By James Van Straten | Edited by Oliver Knight Mar 12, 2026, 10:53 a.m. Make us preferred on Google What to know : Strategy’s STRC preferred, yielding about 11.5% with monthly payouts, is estimated to have funded 7,000 BTC in purchases this week. Two Prime CEO Alexander Blume warns there is “no free lunch,” saying yields far above Treasuries imply added risk. Around 7,000 bitcoin are estimated to have been purchased this week through Strategy’s (MSTR) perpetual preferred stock Stretch (STRC), underscoring how quickly the high yield instrument has become a key engine behind the company’s bitcoin accumulation. But the structure carries risks, according to Alexander Blume, chief executive officer of Two Prime, an SEC registered investment adviser focused on institutional bitcoin yield strategies and bitcoin backed lending. “There’s no free lunch,” Blume said. “A product that pays more than 6% over Treasuries must come with additional risk.” Demand for the preferred shares has surged as investors search for higher returns. STRC currently yields at 11.5% and pays monthly cash distributions. Strategy has described the instrument as resembling a short duration, high yield savings instrument, with the dividend rate adjusted to help keep shares trading near their $100 par value while limiting price volatility. The structure has helped accelerate Strategy’s bitcoin purchases. Market estimates suggest the company has bought more than 11,000 BTC over the past two weeks, bringing total accumulation through the product to roughly 34,000 BTC since it went live, according to STRC.live. Corporate interest is also beginning to emerge. Asset manager Strive (ASST) recently disclosed a $50 million allocation to STRC, while digital credit firm Apyx said it recently purchased an additional 200,000 STRC shares , bringing its total holdings to 255,000 shares. Blume said STRC was a major focus at the recent Strategy World conference, highlighting how central the product has become to the company’s capital strategy. “We have seen a smattering of companies buy STRC,” Blume said, adding that some of the activity appears symbolic or partnership driven for now. Blume also pointed to early efforts to build decentralized finance products on top of STRC, sometimes marketing them as savings like instruments despite volatility in the underlying asset. STRC is designed to trade close to its $100 par value, but Blume said that is not guaranteed. A loss of confidence in the company, bitcoin or the preferred shares themselves could push the price below par and cause significant damage, he said. STRC has on several occasions traded below its $100 par value, prompting the company to raise the dividend to help push the shares back toward par. Blume added that strong momentum, available funding for interest payments and demand for high yield mean the structure is unlikely to face immediate problems. Bitcoin News Two Prime Strategy Más para ti Bitcoin climbs the wall of worry amid escalating Iran war and stock market losses Por James Van Straten | Editado por Omkar Godbole hace 3 minutos BTC holds near $70,000 and outperforms major assets during Middle East tensions, even as derivatives data and fear indicators signal deep market pessimism. Lo que debes saber : Bitcoin has risen about 7% since the Middle East conflict escalated on Feb. 28, outperforming the S&P 500, Nasdaq 100, gold and silver, while holding steady near $70,000 even as Brent crude briefly pushed back toward $100 per barrel. Despite the stable price action, sentiment remains weak, with bitcoin funding rates negative since early March and the crypto fear and greed index in extreme fear territory, highlighting a disconnect between market positioning and price resilience. Leer la noticia completa Latest Crypto News Bitcoin climbs the wall of worry amid escalating Iran war and stock market losses 3 minutes ago Bitcoin steady near $70,000 as rising open interest hints at cautious, bearish positioning 21 minutes ago Tokenized crude oil: Inside LITRO’s blockchain pilot ahead of its 2027 launch 3 hours ago Asia’s biggest bitcoin buyer now wants to build the BTC ecosystem 3 hours ago Across's acx rockets 80%, massively beating bitcoin, on plans to dump its DAO structure 4 hours ago Crypto code commits fall 75% as developers move to AI projects 4 hours ago Top Stories Bonk.fun hacked: Domain hijacked, crypto drainer planted 6 hours ago SEC, CFTC end years of rivalry with deal that will mean combined crypto oversight 11 hours ago XRP steadies near $1.38 as Bollinger squeeze hints at breakout before CPI 5 hours ago Wells Fargo signals deeper push into crypto, filing trademark for WFUSD 19 hours ago Senate Democrats push prediction market limits, including banning bets on war, death Mar 11, 2026