Strategy Inc. said it will issue more perpetual preferred shares under a new product called Stretch, a structure aimed at giving investors crypto-linked exposure without the sharp swings seen in the company’s common stock. CEO Phong Le told Bloomberg on February 12, 2026 that the move comes after a severe drawdown in the stock, which had fallen by more than 70% as Bitcoin prices weakened.
Monthly dividend resets are designed to keep shares near $100
The preferred shares are built to trade around a $100 level rather than move like common equity. Strategy’s approach is a monthly reset: every 30 days, the company reviews market conditions and sets a new dividend rate. The current rate is 11.25%. That yield is meant to encourage investors to hold the shares, helping support trading close to face value.
The structure separates two kinds of exposure inside the same company. Common shares remain the higher-volatility, higher-upside instrument, while perpetual preferred shares are positioned as an income-oriented alternative for investors who want steadier pricing.
New capital is still directed toward Bitcoin purchases
Strategy said proceeds from these preferred shares will be used to buy more BTC. The company currently holds over 714,000 BTC, according to the source material. After Bitcoin fell below $67,000, the earlier model of selling common equity to expand its Bitcoin treasury became less effective. Stretch is being presented as another funding route, described in the source as a form of “digital credit” that allows the firm to keep adding BTC on a quarterly basis without putting the same pressure on the common stock.
To cover preferred dividends without selling Bitcoin, Strategy has also set aside a $2.25 billion cash reserve. Co-founder Michael Saylor said the company has no plan to sell its holdings and continues to pursue its goal of becoming the world’s leading “Bitcoin bank.”
Product targets institutions seeking lower-volatility BTC exposure
The design also appears tailored to larger banks and funds that want access to Bitcoin-linked returns but with less direct price risk. A monthly dividend reset, a face-value anchor, and dedicated cash reserves make the instrument look closer to a credit-style product than a pure equity bet tied directly to BTC’s day-to-day moves.
If Stretch works as intended, it could offer a model for other public companies holding large Bitcoin reserves. In Strategy’s case, the company is clearly trying to separate its growth story from its income product, using preferred shares to keep funding its digital treasury while limiting volatility for a different class of investors.