MicroStrategy's new funding route
MicroStrategy said it funded a $1 billion weekly Bitcoin purchase entirely with high‑yield 'Stretch' perpetual preferred shares for the first time. (x.com) The company used this structured security to continue its crypto accumulation program while accessing alternative capital markets. (x.com)
Strategy said it funded a $1.001 billion Bitcoin purchase entirely by selling its “Stretch” preferred shares, without using common stock this time. (sec.gov) The company bought 13,927 Bitcoin during April 6 through April 12 at an average price of $71,902, lifting its holdings to 780,897 Bitcoin. (strategy.com) A Bloomberg Law report said this was the first time since Strategy launched the security in July 2025 that a weekly Bitcoin purchase was financed entirely with “Stretch” shares. (news.bloomberglaw.com) “Stretch,” traded as STRC, is a perpetual preferred stock: investors buy shares that sit above common stock in the capital structure, receive cash dividends, and have no set maturity date. (strategy.com) Strategy says STRC currently pays an 11.50% annual dividend, payable monthly in cash, and adjusts that rate monthly with the goal of keeping the shares trading near their $100 stated amount. (strategy.com) That gives Michael Saylor’s company another funding lane for its Bitcoin buying program, alongside common stock, convertible debt, and other preferred securities it has issued over the past year. (strategy.com) The security is no longer a small sidecar. Strategy said in February that STRC had grown to $3.4 billion in size, and its market page now shows about $5.355 billion of notional value outstanding. (strategy.com 1) (strategy.com 2) Strategy launched STRC in July 2025, priced the initial public offering at $90 a share, and raised about $2.521 billion in gross proceeds. The company said at the time it was the largest United States initial public offering of 2025 to date and the largest United States exchange-listed perpetual preferred stock offering since 2009. (strategy.com 1) (strategy.com 2) The trade-off is straightforward: Strategy gets fresh cash without selling as much common equity, while preferred investors get a double-digit cash yield that depends on the company continuing to service dividends. (strategy.com) (sec.gov) For now, the result is simple. Strategy kept buying Bitcoin in billion-dollar clips, and this time the money came from a security built to look more like income stock than a crypto bet. (strategy.com) (news.bloomberglaw.com)
