Strategy Buys 7,000 BTC Via STRC — Risk Warnings Emerge

Strategy (formerly MicroStrategy) purchased an estimated 7,000 Bitcoin in one week through its new instrument — Stretch (STRC) perpetual preferred stock. This confirms that STRC is rapidly becoming the primary mechanism for Bitcoin accumulation in Michael Saylor's company portfolio.

What is STRC

Stretch (STRC) is a perpetual preferred stock issued by Strategy that trades on public exchanges and pays a monthly dividend yielding approximately 11.5% annually. Funds raised from STRC sales are directed exclusively toward Bitcoin purchases. Essentially, by buying STRC, an investor finances Bitcoin acquisition and receives a fixed monthly payment in return.

This complements Strategy's other capital-raising tools — convertible bonds and the ATM (at-the-market) program for selling MSTR common stock. The last major purchase through common shares occurred on March 9, when the company bought $1.3 billion worth of Bitcoin.

Scale of accumulation

The pace of Bitcoin buying through STRC is remarkable. During the first week of March, approximately 4,000 BTC were purchased, followed by another 7,000 BTC in the second week. Since its launch, Strategy has accumulated roughly 34,000 Bitcoin through this channel alone.

The company's total holdings now exceed 720,000 BTC, making Strategy by far the largest corporate Bitcoin holder in the world.

Criticism and risks

Not all market participants share the optimism around STRC. Two Prime CEO Alexander Blume warns that there is "no free lunch." In his view, a yield of 11.5% — significantly exceeding US Treasury rates — inevitably implies elevated risk for investors.

The core concern is that STRC payments depend on Strategy's ability to service debt and generate income. If the Bitcoin price drops significantly, the company could find itself in a difficult position — obligations to preferred shareholders remain regardless of asset value decline.

Saylor's strategy

Strategy founder Michael Saylor remains a convinced advocate of maximum Bitcoin accumulation at any price. He has repeatedly stated that he considers Bitcoin the best store of value and plans to continue purchases regardless of short-term market fluctuations.

The STRC launch represents another step in this approach — it allows raising capital without diluting existing MSTR shareholders and without creating debt obligations with fixed maturity dates. However, critics point out that perpetual preferred shares with high yields could become a significant burden under adverse conditions.

What it means for the market

Strategy's aggressive Bitcoin buying continues to provide support for the cryptocurrency's price. Acquiring 7,000 BTC in one week at the current price of approximately $70,000 represents an investment of roughly $490 million — a substantial volume of demand that partially offsets the general bearish sentiment in the market. At the same time, concentrating such a large amount of Bitcoin in a single company adds systemic risk to the entire ecosystem.