TLDR
- Strategy (MSTR) CEO Phong Le says the company will transition from common stock sales to preferred stock offerings to fund Bitcoin purchases
- Strategy’s perpetual preferred stock STRC reclaimed its $100 par value Wednesday for the first time since mid-January, enabling resumed at-the-market offerings
- STRC offers an 11.25% annual dividend paid monthly, recently increased from previous rates to incentivize trading near par value
- Le dismissed the idea of acquiring underperforming Bitcoin treasury rivals, calling such moves a distraction from core business
- Strategy common shares dropped 5% Wednesday to $126.14 while Bitcoin traded around $67,500
Strategy (MSTR) is shifting its funding approach for Bitcoin acquisitions. The company plans to rely more heavily on preferred stock sales instead of issuing common shares that dilute stockholder value.
JUST IN: Strategy CEO Phong Le says their preferred stock “Stretch” closed at $100 today — meaning they’ll be buying more Bitcoin 💥
"The story of the day is Stretch closes at $100, exactly how it was engineered to perform." 🚀
— Bitcoin Magazine (@BitcoinMagazine) February 11, 2026
CEO Phong Le announced the transition during an appearance on Bloomberg’s “The Close” Wednesday. “We will start to transition from equity capital to preferred capital,” Le said.
The move centers on Strategy’s perpetual preferred stock called Stretch (STRC). The company launched STRC in July as its fourth perpetual preferred offering.
STRC hit a key milestone Wednesday. The preferred stock reclaimed its $100 par value for the first time since mid-January.
Le called this the “story of the day.” The return to par value matters because Strategy won’t offer new STRC shares below that price threshold.
STRC Recovery Unlocks New Funding
The preferred stock had fallen below $94 earlier this month. That decline came as Bitcoin crashed under $60,000 in early February.
Now trading at par, Strategy can resume at-the-market offerings. These sales will fund additional Bitcoin purchases without diluting common shareholders.
STRC offers an annual dividend of 11.25%, paid monthly. Strategy recently increased this rate to keep the preferred stock trading near its $100 par value.
Le acknowledged the preferred stock needs time to gain traction. “Throughout the course of this year, we expect Stretch to be a big product for us,” he said.
The preferred stock structure appeals to investors seeking steady income. It provides an alternative to common stock for investors uncomfortable with Bitcoin’s volatility.
No Interest in Acquiring Rivals
Le pushed back on speculation that Strategy might acquire underperforming Bitcoin treasury companies. Some analysts suggested such deals could let firms buy Bitcoin at a discount.
“I think it would be a distraction to go buy, at a discount to net asset value, another digital asset treasury company,” Le said. He compared the situation to other emerging markets like electric cars and AI.
“You want to focus on your core product,” Le added.
The crypto treasury space has become increasingly crowded. Multiple companies now compete for investor attention in this narrow market segment.
Some Bitcoin treasury firms trade below their net asset value. Their market caps fall short of the actual Bitcoin they hold.
Strategy remains the world’s largest corporate Bitcoin holder. The company continues purchasing Bitcoin regularly despite market volatility.
Bitcoin traded around $67,500 Wednesday after reaching an intraday high above $68,000. The cryptocurrency has remained relatively flat over the past 24 hours.
Strategy’s common stock fell 5% Wednesday to close at $126.14. The decline came despite STRC’s recovery to par value.
STRC last traded at $100 on January 16 when Bitcoin hovered near $97,000. The preferred stock dropped to $93 as Bitcoin fell to $60,000 on February 5 before rebounding this week.
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