Strategy to issue more preferred stock to address volatility concerns

Strategy is issuing additional perpetual preferred stock to fund its Bitcoin purchases. In an interview with Bloomberg, CEO Phong Le explained that the product is aimed at investors seeking exposure to digital assets with less volatility. The preferred stock, called 'Stretch,' features a variable dividend rate of 11.25% and monthly interest rate adjustments designed to keep its price near the par value of $100. To date, however, preferred stock has been a minor fundraising tool for the company. Over the past three weeks, Strategy issued approximately $370 million in common stock and $7 million in perpetual preferred stock to buy Bitcoin, bringing its total holdings to over 714,000 BTC (worth about $48 billion). The company's previous model of issuing stock to buy Bitcoin has stalled as the cryptocurrency's price has fallen roughly 50% from its peak, causing Strategy's common stock to decline as well. Co-founder Michael Saylor has dismissed any possibility of selling Bitcoin, stating that the company plans to continue making purchases every quarter.