In a significant shift in funding strategy, Strategy (MSTR) announced plans to transition from common stock sales to preferred stock offerings, a move aimed at bolstering its Bitcoin acquisitions while minimizing the dilution of shareholder value. This announcement comes as CEO Phong Le confirmed the company’s commitment to utilizing its perpetual preferred stock, known as Stretch (STRC), for funding purposes.
During a recent interview on Bloomberg’s “The Close,” Le expressed optimism about the company’s new approach: “We will start to transition from equity capital to preferred capital.” This shift signals Strategy’s intention to leverage its preferred stock, which had just reclaimed its $100 par value for the first time since mid-January 2026.
The recovery to this crucial price point enables Strategy to resume at-the-market offerings, allowing the company to acquire additional Bitcoin without impacting common shareholders. The STRC securities offer an enticing 11.25% annual dividend, paid monthly, which has been recently increased to motivate trading at or near the par value.
Previously, STRC had struggled, trading below $94 earlier this month amidst a broader Bitcoin market downturn that saw prices dip beneath $60,000. However, as Bitcoin stabilized around $67,500 following a brief ascent toward $68,000, Le stated, “Throughout the course of this year, we expect Stretch to be a big product for us,” suggesting that the preferred stock will play a critical role in the company’s financial strategy moving forward.
Le also dismissed speculation regarding potential acquisitions of underperforming Bitcoin treasury rivals, asserting that such moves would detract from Strategy’s core business objectives. “I think it would be a distraction to go buy, at a discount to net asset value, another digital asset treasury company,” he remarked, emphasizing the need for companies in emerging markets, like electric vehicles and artificial intelligence, to remain focused on their primary product lines.
As the crypto treasury landscape becomes more crowded, Strategy continues to hold the title of the world’s largest corporate Bitcoin holder. Despite the fluctuations in Bitcoin prices, the company has maintained a strategy of regular Bitcoin purchases, solidifying its position in the market.
Despite the positive outlook for its preferred stock, Strategy’s common shares experienced a notable 5% decline, closing at $126.14 on Wednesday. This drop occurred even as STRC demonstrated a robust recovery, illustrating the complex interplay between strategic funding measures and market reactions.
The turbulent nature of the Bitcoin market has resulted in various corporate players vying for investor attention, but Strategy remains steadfast, navigating the challenges with a clear focus on its long-term goals. Investors are keenly watching how the new funding strategy will unfold in the coming months, particularly as it relates to ongoing Bitcoin acquisitions.
As Bitcoin continues to trade around $67,500, Strategy aims to capitalize on market opportunities while enhancing shareholder value through its innovative funding strategy. It remains to be seen how effectively this approach can stabilize common stock prices amid a climate of uncertainty in crypto markets.
