MicroStrategy announced a shift to perpetual preferred shares to fund its aggressive Bitcoin acquisition strategy, aiming to address stock dilution concerns. The company reported a massive $12.4 billion net loss for Q4 2025, including $17.4 billion in unrealized losses on its Bitcoin holdings. Its stock fell 5.21% as Bitcoin’s price decline continues to pressure the firm’s financials.
MicroStrategy is shifting its financing model to use perpetual preferred shares for funding Bitcoin purchases. CEO Phong Le stated this move aims to provide stability amidst ongoing volatility in the company’s stock.
The new Stretch (STRC) perpetual preferred shares closed at $100 with an 11.25% monthly reset dividend rate. This strategy represents a pivot from equity capital toward preferred capital for large-scale Bitcoin acquisitions.
Executive Chairman Michael Saylor reiterated the company’s commitment, saying, “We’re going to continue accumulating Bitcoin, and we have no plans to sell any of our Bitcoin.” The firm recently sold $370 million in common stock and $7 million in preferred stock to buy more Bitcoin.
MicroStrategy’s stock has fallen nearly 20% this year and is down 70% since a major cryptocurrency sell-off in October. The stock lost 5.21% on Thursday, closing at $126.07 as Bitcoin’s price correction continues.
The company reported a net loss of $12.4 billion for the fourth quarter of 2025. This included a $17.4 billion unrealized loss on digital assets under fair value accounting.
Bitcoin is currently trading around $67,100 according to CoinMarketCap data. The company still holds nearly $6 billion in unrealized losses on its Bitcoin assets.
