Strategy will favor financing through preferred stock to buy BTC, aiming to increase holdings continuously during a downtrend.

On February 12, Strategy CEO Phong Le stated during a Bloomberg live broadcast that Strategy will begin gradually reducing equity financing and instead use preferred stock financing to fund Bitcoin acquisitions. BlockBeats Note: Equity financing directly dilutes existing shareholders’ ownership and earnings per share, and losses are amplified during large stock price fluctuations, especially when Bitcoin declines. However, it has lower costs and no fixed dividend pressure. Preferred stock financing offers fixed dividend priority, does not dilute common stock control and voting rights, and provides more stable financing that attracts conservative investors. However, it requires a permanent dividend obligation and has relatively higher costs. Strategy’s shift to preferred stock financing aims to continue buying Bitcoin during market volatility while reducing dilution pressure on common shareholders.