TechFlow News, February 12: According to a Bloomberg report, Phong Le, CEO of Strategy, stated in an interview that the company will issue additional perpetual preferred shares to alleviate investor concerns over sharp fluctuations in its stock price. Le explained that Strategy offers investors a tool—under the product name “Stretch”—that provides exposure to digital assets while mitigating volatility risk. The dividend rate for this product is reset monthly and currently stands at 11.25%, aiming to keep its trading price stable near its $100 par value.
To date, preferred shares have accounted for a small portion of Strategy’s financing. The company has sold approximately $370 million in common stock and $7 million in perpetual preferred shares to fund its Bitcoin purchases over the past three weeks.
