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COINTURK NEWS > Bitcoin (BTC) > MicroStrategy Launches Perpetual Preferred Stock to Stabilize Shares and Bolster Bitcoin Strategy
Bitcoin (BTC)

MicroStrategy Launches Perpetual Preferred Stock to Stabilize Shares and Bolster Bitcoin Strategy

In Brief

  • MicroStrategy is issuing perpetual preferred stock to reduce share volatility and attract capital.

  • The firm continues accumulating Bitcoin despite unrealized losses and declining share value.

  • The new strategy introduces fresh risks, notably fixed dividend liabilities if Bitcoin lags.

Ömer Ergin
Ömer Ergin 2 months ago
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Strategic consulting firm MicroStrategy has introduced a new perpetual preferred stock issuance in an effort to reduce market turbulence and bolster investor confidence. The company, best known for its heavy bets on Bitcoin, has seen its shares slip 17 percent since January, prompting management to unveil this new measure as a counter to volatility in its common shares.

Contents
Leadership Turns to Preferred Stock as Key Funding RouteBitcoin Purchases Continue as MSTR Shares Face PressureShifting Capital Structure and Emerging Risks

Leadership Turns to Preferred Stock as Key Funding Route

Under CEO Phong Le’s guidance, MicroStrategy stands out for allocating a substantial portion of its portfolio to Bitcoin. The latest move is designed to cushion the blow of digital asset fluctuations on the company’s broader financial performance. Le noted that recent sharp swings in Bitcoin’s price have fed directly into the company’s share performance. By offering a new product dubbed “Stretch,” Le emphasized that investors can gain exposure to digital assets with less volatility compared to traditional equity structures.

“We designed the Stretch product for investors seeking exposure to digital assets while minimizing volatility. The product closed exactly as planned, with a face value of $100,” Phong Le explained.

Stretch—the newly launched preferred share—currently offers a variable monthly dividend of 11.25 percent, recalculated each month. The company aims for these shares to trade close to a nominal value of $100. MicroStrategy is also ramping up its efforts to promote the product and keep investors informed about its features and potential benefits.

The CEO remarked, “Adoption of such products takes time and requires some marketing. Still, we delivered a robust liquidity performance this year. Our plan this year is a gradual transition from equity capital to preferred capital, and we expect Stretch to occupy a more prominent place in our portfolio.”

Bitcoin Purchases Continue as MSTR Shares Face Pressure

MicroStrategy has continued to grow its Bitcoin reserves, reaching a total of 714,644 BTC after the latest acquisition. However, the current market value of Bitcoin remains well below the company’s average purchase cost, creating new financial headwinds. As of the latest data, Bitcoin trades at about $67,422—significantly lower than the firm’s average price of $76,056 per coin. This gap has resulted in unrealized losses on the firm’s Bitcoin holdings, estimated at roughly $6.1 billion.

Shares traded under the ticker MSTR have dropped by 17 percent year-to-date, with a single-day decline of 5 percent on a recent Wednesday. In the same period, Bitcoin itself has slipped around 22 percent. MicroStrategy’s core financing approach historically relies on new share offerings. A key metric investors are watching is the ratio of the company’s share price to the per-share net asset value of its Bitcoin holdings (mNAV). According to SaylorTracker data, the company’s diluted mNAV stands at 0.95, indicating shares are trading below their net asset value.

Shifting Capital Structure and Emerging Risks

The company faces difficulties raising new capital through common equity given that shares now trade below net asset value. When shares are priced above net asset value, the firm can issue new stock and use proceeds to buy additional Bitcoin—delivering value for shareholders. However, in today’s environment, fresh share issues risk diluting existing shareholders. This has prompted MicroStrategy to pivot to perpetual preferred shares, aiming to recalibrate its risk profile while supporting the sustainability of its Bitcoin acquisition strategy.

On the flip side, this new approach creates added financial commitments such as regular dividend payments. Should Bitcoin’s weak price trend persist, MicroStrategy could face difficulties meeting these obligations, marking a significant financial risk. Nonetheless, the company’s plan marks a notable shift not only in dividend policy but also in its ongoing drive for Bitcoin-fueled growth.

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Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should conduct their own research.

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Stretch eyes twice-monthly payouts for 11.5% yield

Ömer Ergin 12 February, 2026 - 11:26 am 12 February, 2026 - 8:48 am
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