Strategy Taps 11.5% Yield Product for 7,000 BTC Purchase
Strategy acquired an estimated 7,000 Bitcoin during the week of March 12, 2026, using its perpetual preferred stock, known as Stretch (STRC), as the primary funding vehicle. This latest purchase escalates the company's aggressive accumulation strategy, which has seen it buy more than 11,000 BTC in the last two weeks alone. Since the instrument's launch, Strategy has used it to acquire a total of approximately 34,000 BTC.
The STRC instrument is designed to attract investors searching for higher returns in the current market. It offers a substantial 11.5% yield paid out in monthly cash distributions. The company adjusts the dividend rate to maintain the shares' price near a $100 par value, effectively marketing it as a high-yield savings instrument with limited price volatility.
Experts Flag Risk in Yield Over 6% Above Treasuries
This high-yield strategy is drawing scrutiny from financial experts who point to the inherent risks. Alexander Blume, CEO of the SEC-registered investment adviser Two Prime, cautioned that such returns come with significant trade-offs.
A product that pays more than 6% over Treasuries must come with additional risk.
— Alexander Blume, CEO of Two Prime.
Blume's warning highlights the core risk for investors: the stability of the STRC shares is not guaranteed. A loss of market confidence in Strategy, a downturn in Bitcoin's price, or issues with the preferred shares themselves could push the price well below its $100 par value. The shares have previously fallen below par, forcing Strategy to increase the dividend to restore the price, demonstrating the instrument's fragility.
Corporate Interest Grows Despite Volatility Concerns
Despite the underlying risks, corporate interest in the STRC product is expanding. Asset manager Strive (ASST) recently revealed a $50 million allocation to the high-yield shares. Concurrently, the digital credit firm Apyx purchased an additional 200,000 STRC shares, boosting its total holdings to 255,000 shares. This growing adoption signals that institutions are willing to accept higher risk for yield in the digital asset space.
This accumulation occurs as the broader crypto market shows strength, with Bitcoin trading near $72,000. While Blume acknowledges that strong market momentum and investor demand for yield make immediate problems for the STRC structure unlikely, the long-term stability hinges on continued confidence and a favorable market environment.
