Strategy (MSTR), the leading corporate holder of bitcoin, has launched its Perpetual Stretch Preferred Stock (STRC), a new financial instrument that allows for rapid acquisition and storage of bitcoin. Despite this success, analysts warn of hidden risks that extend to similar preferred offerings, including another bitcoin treasury company, Strive’s preferred offering, SATA. STRC works by adjusting yield to maintain a steady $100 share price and using a variable monthly dividend to keep trading near that level. The product offers a floating yield of 11.5%, far above U.S. Treasuries. However, BitMEX Research has warned that these risks are greater than those related to short duration U.K. treasuries and that if bitcoin drops and confidence in Strategy’S balance sheet weakens, STRC could slip below par. To defend the price, the company would need to raise the dividend. However it has also been suggested that the company could monetize its massive bitcoin stash for further dividend payments.