Strategy plans to issue more perpetual preferred shares to reduce stock price volatility risk

SmartContractAuditor · 2026-02-12T00:26:40+00:00

Strategy plans to issue a perpetual preferred stock called Stretch, reducing stock price volatility risk through fixed asset value products. Currently holding 714,000 Bitcoins, with a net loss of $12.4 billion in the fourth quarter. The CEO stated this is a protective mechanism designed for investors to hedge against fluctuations.

SmartContractAuditor

2026-02-12 00:26:40

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Odaily Planet Daily News: Strategy plans to issue more perpetual preferred shares called Stretch, aimed at reducing investors’ exposure to stock price volatility through fixed asset value products. The preferred shares currently offer a variable dividend rate of 11.25%, reset monthly to maintain a face value of $100. Strategy currently holds over 714,000 Bitcoin, with a total value of approximately $48 billion. Due to the decline in Bitcoin prices, Strategy reported a net loss of $12.4 billion in the fourth quarter. CEO Phong Le stated that this move is a protective mechanism designed for investors seeking digital capital while avoiding volatility. Executive Chairman Michael Saylor said that concerns about the company being forced to sell holdings due to Bitcoin price drops are unfounded, and the company plans to continue buying Bitcoin each quarter.

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