Strategy CEO Phong Le announced a shift in capital strategy for acquiring Bitcoin, moving from equity sales to preferred stock offerings like its Stretch perpetual preferred product. The company’s stock price returned to its designated $100 minimum, potentially enabling new share offerings to fund further Bitcoin purchases, while Le dismissed acquiring rival Bitcoin treasury firms as a “distraction.”
Strategy CEO Phong Le stated the company will transition from equity capital to preferred capital to finance its Bitcoin acquisitions. He made the comment during an appearance on Bloomberg’s “The Close,” highlighting the company’s Stretch perpetual preferred stock as a key product moving forward.
The Stretch offering, aimed at buyers seeking stability, provides an annual dividend of over 11%. Le acknowledged the product would require time and marketing but expressed confidence it would be significant for the company throughout the year.
Strategy’s preferred stock, identified by the ticker STRC, reclaimed its par value of $100. This price level is the company’s designated minimum for considering new share offerings to fund further Bitcoin purchases.
The company’s common stock has faced recent pressure, dropping below $94 earlier in the month as Bitcoin’s price fell. Meanwhile, Bitcoin traded around $66,800, down from a recent intraday high above $68,000.
When asked about potentially acquiring rival Bitcoin treasury companies, Le called such a move a distraction. “I think it would be a distraction to go buy, at a discount to net asset value, another digital asset treasury company,” he stated, emphasizing a focus on the core product.
