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MicroStrategy (which has largely rebranded its corporate identity as Strategy Inc.) is indeed changing its capital raising strategy. On February 12, 2026, the company confirmed its plan to shift from the sale of common stock to the issuance of perpetual preferred stock as the primary way to finance its aggressive Bitcoin purchase strategy.

This change is designed to address two main issues: dilution of the holdings of existing common shareholders and the excessive volatility of the MSTR stock price.
The New Strategy: "Stretch" Preferred Stock

The centerpiece of this plan is a specific instrument the company calls Stretch (STRC). Here is what makes it different from their usual stock offerings:

Targeted Stability: STRC is designed to trade at a $100 par value. By offering a variable dividend rate that resets monthly, the company aims to keep the trading price stable, even when Bitcoin is volatile.

High Yield: As of February 2026, the annualized dividend yield on these shares is approximately 11.25%.

Reduced Dilution: By issuing preferred stock instead of common stock, the company can raise billions without immediately flooding the market with new common shares, which often puts downward pressure on the stock price.

Institutional Appeal: Strategy is marketing these shares to "stability-focused" institutional investors, like pension funds and insurers, who want Bitcoin exposure without the "stomach-churning" 10% daily price swings.
Why Now?

The move comes during a challenging period for the company. While Bitcoin has been trading around $69,000, MicroStrategy’s average cost basis is roughly $76,056, leaving their massive 714,644 BTC treasury "underwater" on paper by several billion dollars.

Total BTC Holdings 714,644 BTC

Average Purchase Price~$76,056

Current BTC Price~$69,000

Preferred Stock Dividend 11.25% (Monthly Reset)
The "Perpetual Motion" Problem: Critics, including short-sellers, have argued that the company’s model of selling stock to buy Bitcoin works beautifully in a bull market but creates a "downward spiral" when the stock price falls faster than Bitcoin itself. Perpetual preferred stock is the company's attempt to break that cycle by creating a more "boring" way to fund their "exciting" Bitcoin habit.

Key Takeaway for Investors

If you hold MSTR common stock, this shift is generally a move to protect you from further dilution. However, it also adds a permanent "rent" (the 11.25% dividend) that the company must pay to preferred shareholders before common shareholders see a cent of value.
‍$BTC