Strategy Turns to Preferred Stock for Bitcoin Buys Amid Stock Slide

Highlights:

• Strategy CEO Phong Le shifts focus to preferred stock to reduce Bitcoin-linked share volatility.
• Stretch shares aim for price stability with 11.25% variable dividends.
• The company avoids crypto treasury takeovers, sticking to its BTC accumulation model.

Strategy (previously MicroStrategy) is shifting its approach to finance its Bitcoin treasury. CEO Phong Le revealed that the company is going to focus on perpetual preferred stock, referred to as Stretch (STRC), rather than common shares. The aim is to protect investors against the volatile nature of MSTR stock while accumulating Bitcoin.

Le told Bloomberg that the move will target investors seeking digital exposure without experiencing extreme price volatility. He said, “We have designed something that will safeguard those investors who want to access digital capital without such volatility.”

The Stretch stock has a variable dividend, which is reset every month. The dividend currently stands at $11.25, with the stock now trading at its par value of $100. The design assists in limiting price dynamics and facilitates liquidity amid institutional buyers.

According to Bloomberg, Strategy CEO Phong Le stated that the company will issue more perpetual preferred shares to address investor concerns over stock price volatility. The new product, "Stretch," offers investors exposure to digital assets while mitigating risk, with a monthly…

— Wu Blockchain (@WuBlockchain) February 12, 2026

Taming Market Swings While Buying Bitcoin

In recent weeks, the company raised common shares valued at $370 million and preferred shares worth $7 million. Those funds were used to buy over 1,000 Bitcoin, bringing the total holdings to 714,644 BTC. MSTR shares, however, have plummeted, losing 17% in 2026 alone. The decline is nearly similar to that of Bitcoin, which has dropped by 22% year-to-date. Bitcoin has dropped nearly half since the 2024 peak of $125,260.

This pressure has compelled Strategy to pursue a more stable funding path. Le says that a shift between equity and preferred capital will help protect the financial health of the firm on the crypto rollercoaster. This pivot revolves around the Stretch stock. STRC also presents a good alternative to traditional equity funding, with its 11.25% yield and stability in price. According to Le, the product is already experiencing liquidity 150 times higher than other preferred shares.

Strategy Rejects Acquisitions, Focuses on Core Model

Le also rejected the idea of acquiring competing Bitcoin treasury companies. He characterized such purchases as distractions with regard to the real purpose of the company. He said, “You need to stick to your core product.”

Some analysts had speculated that Strategy could seek to acquire other digital asset treasury firms that were trading below net asset value. Le, however, made it clear that the company has no interest in scooping up discounted holdings. Rather, Strategy continues to focus on the accumulation of Bitcoin via new preferred stock offerings. Stretch is now in its fourth series, and with the stock up to $100, the firm is looking into new issuances soon.

Strategy still has plans to expand into the BTC treasury despite the recent losses. Its executive, Michael Saylor, echoed Le’s statement on X, saying that it has no plans to sell its Bitcoin holdings.

"The story of the day is Stretch closes at $100, exactly how it was engineered to perform." – Strategy CEO @PhongLe on $STRCpic.twitter.com/kscPyKOh1m

— Michael Saylor (@saylor) February 11, 2026

Strategy also boosts its capital structure through preferred shares. They sit between common equity and debt, offering predictable returns while avoiding heavy dilutions. During the fourth-quarter earnings call last week, the Strategy CEO said that the firm’s balance sheet remains safe unless Bitcoin crashes to $8,000. He also added that real pressure could be witnessed only in an extreme situation.