Expert on Strategy's BTC buy: 'There is no free lunch'

Alexander Bloom, CEO of Teo Prime, has pointed out that "there is no free lunch" regarding Strategy's recent purchase of 7,000 BTC, which was financed by issuing perpetual preferred stock (STRC). He noted that any product offering a yield over 6% higher than U.S. Treasury bonds inevitably carries additional risk. Bloom warned that if confidence in the company, Bitcoin, or the preferred stock itself is lost, the price could fall below its face value, causing significant damage. Strategy's STRC offers a high dividend of 11.5%.