The post Why Strategy’s Preferred Stock Strategy Matters for MSTR Holders appeared on BitcoinEthereumNews.com.

Strategy, formerly known as MicroStrategy, plans to issue additional perpetual preferred stock in a bid to ease investor concerns over the volatility of its common shares, according to its chief executive officer. The announcement comes as Strategy’s stock, trading under the ticker MSTR, has fallen nearly 17% year to date. Sponsored In a recent interview with Bloomberg, Strategy CEO Phong Le addressed Bitcoin’s price swings. He attributed its volatility to its digital characteristics. When BTC rises, Strategy’s digital asset treasury plan drives outsized gains in its common stock.  Conversely, during downturns, the shares tend to decline more sharply. He noted that Digital Asset Treasuries (DATs), including Strategy, are engineered to follow the leading cryptocurrency. To address this dynamic, the company is promoting its perpetual preferred shares, branded “Stretch.”  “We’ve engineered something to protect investors who want access to digital capital without that volatility and that’s Stretch,” Le told Bloomberg.” To me, the story of the day is Stretch closes at $100 exactly how it was engineered to perform.” The preferred shares offer a variable dividend, currently set at 11.25%, with the rate reset monthly to encourage trading near the $100 par value. It’s worth noting that preferred stock has so far represented only a small portion of Strategy’s capital-raising activity. The company sold approximately $370 million in common stock and about $7 million in perpetual preferred shares to fund its previous three weekly Bitcoin purchases. Sponsored However, Le said, Strategy is actively educating investors about what preferred shares can do. “It takes some seasoning. It takes some marketing,” he said. “This year, we have seen extremely high liquidity with our preferreds, about 150 times other preferreds, and as we go throughout the course of this year, we expect Stretch to be a big product for us. We will start to…

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Filed under: News - @ February 12, 2026 5:28 am