Strategy CEO Shifts Funding Toward Preferred Stock For Bitcoin Buys

On Thursday, Strategy announced a major shift in its financing model as it looks to calm rising concerns among investors. The company will be using Stretch (STRC) perpetual preferred shares as part of a new financing model aimed at providing stability in funding its purchase of Bitcoins. 

This comes as Strategy looks to address concerns following months of volatility in MSTR stock. This new strategy, as revealed by CEO Phong Le in an interview with Bloomberg Television, represents a shift from equity capital towards preferred capital as Strategy aims to make more acquisitions of Bitcoins on a large scale. 

Strategy Stock Struggles As Preferred Funding Expands

The company’s stock has continued to face pressure, with Strategy seeking to maintain its BTC acquisition strategy with concerns around stock dilution. According to Le, Stretch perpetual preferred shares were closed at $100 today. This, as revealed by Le, represents a level that will provide stability in funding the company’s purchase of Bitcoins. 

The shares have a monthly reset dividend rate of 11.25%. The new model will be designed to ensure that trading activity remains around $100. 

While Strategy’s preferred stock has traditionally accounted for a small percentage of the company’s capital, it has recently sold $370 million in common stock and $7 million in preferred stock as part of a plan to purchase more Bitcoins.

Also Read: Strategy Expands Holdings With Fresh Purchase of 1,142 BTC

The company executive chairman, Michael Saylor, reiterates the company’s commitment to its Bitcoin strategy. He said, “We’re going to continue accumulating Bitcoin, and we have no plans to sell any of our Bitcoin.” This is consistent with the company’s approach during the recent downturns.

MSTR Drops Further As Bitcoin Weakens

The stock is still going through a lot of turbulence. The stock is down by almost 20% this year. It is also down by 70% since the sell-off in the cryptocurrency markets in October. 

The market capitalization of the company is now at approximately $40 billion, following the fall of Bitcoin from above $126,000 to below $65,000.

The shares have declined again on Thursday. The stock lost 5.21% to close at $126.07. This is due to the continued dilution and correction in Bitcoin markets.

The company reported a net loss of $12.4 billion in the fourth quarter of 2025. The firm posted a loss of $670.8 million in the same quarter a year earlier. The latest results included a $17.4 billion unrealized loss on digital assets under fair value accounting.

The unrealized loss is still high this quarter. The company is holding nearly $6 billion in unrealized loss on its Bitcoin assets. Bitcoin is currently trading at around $67,100 as of Thursday afternoon, per CoinMarketCap data, reaching a high of above $68,000 during the day.

Risk Disclosure: This article is for informational purposes only and does not constitute financial advice.

Also Read: Bitcoin Price Analysis: BTC Trades Near $69,000 as Daily RSI Slips Toward 30