- Strategy is shifting its capital strategy to fund Bitcoin purchases from common stock sales to preferred stock sales, specifically its Stretch (STRC) perpetual offering.
- CEO Phong Le stated on Bloomberg that this transition will occur “throughout the course of this year” and expects the product to be significant.
- The company is not interested in acquiring rival Bitcoin treasury firms, labeling such a move a “distraction” from its core focus.
Strategy is pivoting its funding strategy for Bitcoin acquisitions, moving away from equity dilution to focus on its perpetual preferred stock, CEO Phong Le announced during an interview with Bloomberg’s “The Close”. The company’s Stretch (STRC) offering, launched in July, provides over 11% annual dividends and is designed as a stable instrument for financing further Bitcoin accumulation. Consequently, this shift marks a strategic evolution for the firm as it seeks sustainable capital without eroding common shareholder value.
Le acknowledged that marketing the preferred stock would require some “seasoning,” but he projected it would become a major product. Meanwhile, the STRC stock reclaimed its par value of $100, a threshold that potentially allows Strategy to resume equity offerings for Bitcoin purchases. The recovery followed a dip earlier in the month when Bitcoin traded below $60,000, although the cryptocurrency has since stabilized around $66,800.
Furthermore, Le dismissed the idea of consolidating the crowded Bitcoin treasury sector by acquiring rivals. “I think it would be a distraction to go buy, at a discount to net asset value, another digital asset treasury company,” he said, emphasizing a focus on the core business. Shares of Strategy (MSTR) closed the trading session down over 5% at $126.14.
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