Key Insights:
- The strategy plans to issue additional STRC preferred shares to continue acquiring Bitcoin during periods of volatility.
- The company owns 714644 Bitcoin and claims it will not be sold in a regular market.
- MSTR shares have fallen 70% since October as losses and dilution have hurt investor sentiment.
MSTR stock volatility has prompted Strategy to adjust its capital-raising approach as the company continues expanding its Bitcoin holdings. Chief Executive Officer Phong Le said the firm will issue additional Stretch (STRC) perpetual preferred shares to address investor concerns linked to sharp price swings in its common stock while maintaining its Bitcoin acquisition strategy.
MSTR Stock Financing Strategy Centres on Stretch Preferred Shares
In an interview with Bloomberg, Le stated that the company engineered a financing structure designed to provide exposure to digital capital without the volatility associated with common equity.
According to Le, the Stretch preferred stock closed at $100, and its dividend rate resets monthly to encourage trading near that level. The current monthly reset dividend rate stands at 11.25%.
Source: Michael Saylor
The new issuance plan marks a shift toward using perpetual preferred shares more actively as a funding tool. While perpetual preferred shares have historically accounted for a small portion of Strategy’s capital formation, recent Bitcoin purchases were funded with $370 million in MSTR common shares and $7 million in preferred shares.
According to Le, the dividend structure will be used to tame price fluctuations by encouraging trading at or about $100. The preferred shares are issued as perpetual instruments, which lack a maturity date.
Additionally, the firm presently holds approximately 714,644 Bitcoin at an average cost per coin of about $76,056. Strategy recently purchased approximately 1,142 Bitcoin with an average price of approximately $78,815.
The firm continues to treat Bitcoin as a core treasury reserve asset and has not indicated any shift in that approach.
Executive Chairman Michael Saylor reaffirmed that Strategy plans to continue acquiring Bitcoin and does not intend to sell its holdings under normal market conditions. Le also stated that selling Bitcoin would only be considered in an extreme and highly unlikely scenario, such as a prolonged multi-year collapse in the asset’s value.
MSTR Shares Slide Amid Market Pressure
MSTR shares have also experienced significant losses during wider cryptocurrency market instability. The stocks have fallen by almost a quarter of the year to date and by about three-quarters since the October market crash.
However, on Wednesday, shares fell an additional 5.16% to close at $126.14. The stock is down nearly 20% year to date and approximately 70% since the October market downturn. The recession was accompanied by a decline in Bitcoin, which fell 50% from an all-time high of more than $126,000 to under $65,000.
The continued issuance of equity to fund Bitcoin purchases has impacted investor sentiment, and some analysts have lowered their price targets in the wake of the recent correction.
The financial performance in the fourth quarter of 2025 indicated the effect of digital asset revaluation. Additionally, Strategy recorded a net loss of $12.4 billion, or $42.93 per diluted common share, compared with a net loss of $670.8 million in the same period last year.
Under fair value accounting standards, the unrealized loss on digital assets resulted in the company recording an operating loss of $17.4 billion. These unrealized losses have been carried over into the present quarter, with Strategy recording almost $6 billion in unrealized losses on its Bitcoin holdings. Such accounting modifications reflect market price changes rather than actual sales.
Despite the reported losses, Le reiterated that there are no plans to liquidate Bitcoin holdings under standard market conditions.
Strategy Prioritizes Core Digital-Capital Products
In addition to its financing update, Strategy outlined its broader corporate focus. Le said the company intends to prioritize building and scaling digital-capital products rather than pursuing acquisitions of other treasury-focused companies trading at discounts to net asset value.
Market participants have noted that the digital asset treasury sector has grown more competitive, with multiple firms accumulating cryptocurrency reserves. Analysts have suggested that consolidation could occur, with stronger firms potentially acquiring underperforming peers to gain discounted exposure to Bitcoin.
He stated that acquiring other digital asset treasury companies would distract the firm from its primary objective of expanding its structured digital-capital offerings.
