Strategy Perpetual Preferred Shares Aim to Reduce Stock Volatility

How Strategy Perpetual Preferred Shares Shield Digital Investors

On February 12, 2026, Strategy Inc. took a major step to calm nervous investors. CEO Phong Le told Bloomberg that the company will issue more Strategy perpetual preferred shares. These equities are part of a new product called "Stretch". The goal is to give investors a way to join the crypto world without the wild price swings of the company’s regular stock. Recently, the company's stock fell by over 70%, following a drop in Bitcoin prices. This new plan aims to fix that by offering a more stable way to invest in digital capital.

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How Strategy Perpetual Preferred Shares Work

The MicroStrategy organization perpetual preferred shares are designed to stay steady around a $100 price. While regular stock prices can go up and down every minute, these "Stretch" equities use a special monthly reset. Every 30 days, the company looks at the market and sets a new dividend rate. Right now, that rate is 11.25%. This high payout encourages people to keep their units, which helps keep the price stable.

Here is how the "Stretch" product helps the company and its investors:

• Lower Risk: Investors get a steady dividend instead of watching their stock price crash during a crypto dip.

• Funding Bitcoin: Strategy uses the money from these shares to buy more BTC. They currently hold over 714,000 BTC.

• Price Anchor: The monthly reset is meant to keep the shares trading near their $100 face value.

• More Options: It allows big banks and funds to invest in BTC without taking on too much risk.

How Strategy Perpetual Preferred Shares Shield Digital Investors

The company launched these Strategy perpetual preferred shares because the market has become more difficult. In the past, The MicroStrategy organization could easily sell regular units to buy more BTC. But as Bitcoin prices fell below $67,000, that old model stopped working as well. The "Stretch" stock offer a new path. They provide "digital credit" to the firm, which means they can keep buying BTC every single quarter without hurting the stock price.

The MicroStrategy organization is also protecting itself with a massive $2.25 billion cash reserve. This money is used to pay dividends so the company doesn't have to sell its Bitcoin holdings. Co-founder Michael Saylor recently said that the firm has no plans to sell. Instead, they want to be the world's leading "Bitcoin bank." By using preferred units, they can grow their digital treasury while keeping their investors happy and safe from sudden market crashes.

Expert Analysis: A New Model for Bitcoin Investing

The growth of Strategy perpetual preferred Equities shows that the company is maturing. By splitting its stock into two types one for high growth and one for steady income it can attract all kinds of investors. This move is a "game changer" for companies that hold a lot of Bitcoin. If it works, other public companies might follow this lead. It proves that you can be a leader in the digital asset space while still offering safety to those who want it.