Strategy I (formerly MicroStrategy) uses perpetual preferred shares to support Bitcoin accumulation. These shares aim to offer investors high returns while keeping volatility low, and are a key part of the company's "Digital Credit" approach. Strategy has raised billions of dollars with these shares by 2025. In 2026, CEO Phong Le plans to shift funding further towards perpetual preferred shares, viewing Stretch as the year's most important product. The company is still aggressively buying Bitcoin (holding over 714,000 BTC). These shares provide investors with low volatility and consistent returns, making the company's Bitcoin strategy sustainable.

#StrategyToIssueMorePerpetualPreferreds
The company's CEO, Phong Le, stated that this move aims to address investors' concerns about share price volatility. "We've developed a product that will give investors access to digital capital without volatility," Le said in an interview with Bloomberg. This strategy involves focusing on preferred shares to prevent fluctuations in Bitcoin price from affecting MSTR shares. The company's perpetual preferred shares, called "Stretch," currently offer a variable dividend rate of 11.25% and encourage trading near a nominal value of $100 with a monthly reset mechanism. Le emphasized that this product will be a "big step" for the company in 2026, indicating a move away from common share sales to finance Bitcoin purchases. The strategy has raised approximately $5.5 billion through various preferred share issuances by 2025. The recent issuances aim to reduce market volatility while supporting Bitcoin purchases. Analysts note that this approach could attract institutional investors and increase MSTR's leveraged exposure to Bitcoin. However, while potential returns increase if Bitcoin surpasses its all-time high of $73,000, volatility risks remain.
This development was triggered by MSTR shares trading below their net asset value during a period of Bitcoin price weakness. Strategy's new focus is on expanding its investor base through a shift to preferred equity.
The company also plans to enter European markets with innovative tools such as long-term loan products denominated in Euros.