Strategy Deepens Focus on Digital Credit Amid Market Volatility
Key Highlights Strategy rolls out “Stretch” shares to give investors safer Bitcoin exposure amid market swings and stock volatility. Despite recent losses, Strategy keeps buying Bitcoin, holding over 714,000...
Key Highlights
- Strategy rolls out “Stretch” shares to give investors safer Bitcoin exposure amid market swings and stock volatility.
- Despite recent losses, Strategy keeps buying Bitcoin, holding over 714,000 BTC, while reassuring investors about future plans.
- The company plans a long-term Bitcoin security program, working with global experts to tackle future quantum computing risks.
Strategy Inc., a company known for its massive Bitcoin holdings, is taking steps to calm investor concerns over stock volatility. CEO Phong Le announced that the company will issue more perpetual preferred shares to give investors safer exposure to digital assets. The new product, called “Stretch,” offers a monthly reset dividend of 11.25% to encourage the shares to trade around a $100 par value.
Le told Bloomberg, “We’ve engineered something to protect investors who want access to digital capital without that volatility.” The program targets investors wary of Strategy’s fluctuating stock price while allowing continued participation in its Bitcoin-driven growth.
Previously, preferred shares represented only a small fraction of Strategy’s funding. The company sold roughly $370 million in common stock and $7 million in perpetual preferred shares to fund recent Bitcoin purchases.
Bitcoin exposure remains central
Strategy owns over 714,000 Bitcoin, worth about $48 billion. But the recent drop in crypto prices is putting pressure on the company. Bitcoin slipped below $67,000 on Wednesday, almost half of its $125,260 peak in October. As a result, Strategy posted a $12.4 billion loss in Q4, and its stock fell 5% that day, down 73% from its record high in November 2024
Strategy’s old approach depended on selling stock at a higher price to fund more Bitcoin purchases. But with that premium gone and markets tightening, the company had to rethink its strategy. Recently, Co-Founder Michael Saylor reassured investors, calling concerns that declining Bitcoin prices might force sales ‘unfounded.’ He also confirmed that Strategy plans to keep buying Bitcoin every quarter.
Recent Bitcoin purchases and funding strategy
A recent Securities and Exchange Commission filing shows that Strategy bought 1,142 Bitcoin between February 2 and 8, spending about $90 million. The company used money from its at-the-market equity program, which sold 616,715 shares of Class A stock for roughly $89.5 million. Strategy still has nearly $8 billion worth of shares it can issue in the future
With this latest purchase, Strategy now holds 714,644 Bitcoin. The company has spent a total of $54.4 billion, paying an average of $76,056 per Bitcoin. At today’s price of around $66,651 as per CoinMarketCap data, the holdings are showing a paper loss, which makes the Stretch preferred shares even more important for giving investors a safer way to stay involved
Preparing for long-term security risk
Strategy also announced plans to launch a Bitcoin security program focused on quantum computing risks. Michael Saylor emphasized collaboration with the global cybersecurity and crypto communities. He stated, “We want to coordinate with the global cyber crypto and Bitcoin security community because there are a lot of very, very brilliant minds here.”
The initiative will focus on research and coordination rather than immediate technical changes, ensuring Strategy remains prepared for potential long-term threats to Bitcoin security.
Strategy’s new Stretch preferred shares give investors a safer way to get involved in Bitcoin, even as the market swings. Meanwhile, the company keeps buying more Bitcoin and plans ahead to protect its holdings from future risks.
Also Read: Coinbase Launches Agentic Wallets for Autonomous AI Transactions
Disclaimer: The information researched and reported by The Crypto Times is for informational purposes only and is not a substitute for professional financial advice. Investing in crypto assets involves significant risk due to market volatility. Always Do Your Own Research (DYOR) and consult with a qualified Financial Advisor before making any investment decisions.
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