Strategy CEO Phong Le said retail investors account for roughly 80% of holders of the company’s Stretch shares (STRC), a preferred-equity instrument Strategy has used to buy more than $1 billion of Bitcoin this year. Le added that retail buyers tend to prefer low-volatility, high-yield digital credit, which is how Stretch is being positioned.
The company has leaned on Stretch as a lower-volatility onramp to Bitcoin exposure while actively marketing the product. Executive chairman Michael Saylor stepped up sales and promotion of STRC after declines in both Bitcoin and Strategy’s common stock. In March, Strategy used about $1.2 billion raised through at-the-market sales of STRC to purchase Bitcoin; its most recent Bitcoin acquisition, however, was funded by selling common shares.
Saylor has described Stretch as intended for investors who believe in Bitcoin’s long-term outlook but cannot tolerate near-term price swings. Under the structure, roughly the first 10%–11% of annual Bitcoin returns are allocated to the credit investor (the STRC holder). Strategy says the instrument is heavily overcollateralized and is effectively betting that Bitcoin will appreciate more than the roughly 11% annual credit yield, allowing equity holders to capture upside while credit investors receive steady returns.
Stretch pays variable annual dividends that recently have been near 11.5%, a yield above prevailing U.S. Treasury rates. The securities are perpetual derivatives with no maturity date, so Strategy does not repay principal like a bond; investors can hold indefinitely and receive dividends that are adjusted monthly. Those adjustments are designed to keep the trading price close to $100 and to give the instrument the feel of a high-yield, low-volatility savings vehicle rather than a typical equity or crypto asset.
Strategy’s common stock (MSTR) has fallen about 19% year-to-date and roughly 71% from its July 2025 peak. In February, the company said it would rely more on preferred-stock sales to fund Bitcoin purchases. A recent SEC filing disclosed plans to raise as much as $21 billion by selling common stock and another $21 billion via new at-the-market programs for Stretch, signaling an ongoing push to use both equity and STRC issuance to expand the firm’s Bitcoin holdings.