According to Bloomberg, Strategy’s CEO Phong Le announced that the company will issue additional perpetual preferred shares under its product name “Stretch” to ease investor concerns about the high volatility of MSTR stock.

• The preferred shares are perpetual (no maturity date) and pay a variable dividend yield that resets monthly.
• Currently, the dividend rate is about 11.25%, aimed at stabilizing the stock’s price near its $100 par value.

The initiative is designed to:

• offer investors exposure to digital capital with reduced volatility risk compared with MSTR common shares;
• provide an alternative way to raise capital without selling Bitcoin;
• potentially improve the perception of Strategy’s capital structure in volatile markets.

So far, preferred shares have been a relatively small part of Strategy’s financing, with approximately $7 million raised recently as part of Bitcoin purchases alongside common stock issuance.

This move reflects Strategy’s ongoing effort to innovate within its digital credit framework, offering investors new products while maintaining its core position as a corporate Bitcoin holder.