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Approximately 80% of the holders of perpetual preferred shares of Stretch are individual investors, while the proportion among common stockholders (MSTR) is around 40%. This was stated by Phong Le, the CEO of Strategy.
According to him, Stretch shares attract retail investors due to a combination of enhanced returns and relatively low volatility. Previously, Le noted that the company has altered its strategy and intends to finance the majority of its Bitcoin purchases through the issuance of preferred securities. In March, Strategy acquired Bitcoin worth over $1.2 billion using these instruments.
The company has intensified the sales and marketing of Stretch amid a decline in Bitcoin prices and the value of its own shares. These securities are marketed as an investment vehicle in Bitcoin with reduced price fluctuations.
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Executive Chairman Michael Saylor stated that the issuance of a new credit instrument to retail investors is typically challenging; however, the company is optimistic about the appeal of the announced yield of 11%.
Saylor explained that the Stretch concept is aimed at investors who are prepared for long-term investments in Bitcoin but are not willing to accept short-term volatility. He mentioned that the company operates under the assumption that the price of Bitcoin will increase by more than 11% annually, which would enable dividend payments.
It is important to note that Stretch shares do not offer fixed returns or maturity dates, unlike bonds. The securities are designed for perpetual ownership with regular dividend distributions. The dividend amount is adjusted monthly based on market conditions to maintain the market price of the shares near $100.
On Monday, the company submitted documents to the U.S. Securities and Exchange Commission (SEC) indicating its intention to raise up to $21 billion through the sale of common shares of Strategy (MSTR) and an additional up to $21 billion through the issuance of Stretch.
According to Google Finance, MSTR has decreased by 19% since the beginning of the year and has fallen approximately 71% from its peak in July 2025 at $456. However, the most recent Bitcoin purchase of $76.6 million was financed through the sale of common shares.
