Strategy CEO Phong Le revealed on Wednesday that approximately 80% of the holders of the company’s perpetual preferred shares, known as STRC or ‘Stretch,’ are retail investors. Le noted that ‘retail investors prefer low-volatility, high-yield digital credit,’ suggesting continued appetite among everyday investors for Bitcoin exposure despite the cryptocurrency sitting roughly 45% below its all-time high. The disclosure highlights the growing role retail participants play in Strategy’s capital-raising efforts.
Strategy’s executive chairman, Michael Saylor, has been actively promoting Stretch shares following declines in both Bitcoin and the company’s common stock. Speaking at the 2026 Digital Asset Summit in New York on Thursday, Saylor described the challenge of selling a new credit instrument to retail investors as ordinarily one of the hardest tasks in finance. He has positioned STRC as an entry point for investors who believe in Bitcoin’s long-term prospects but cannot tolerate its short-term price swings.
Saylor explained the mechanics of Stretch in an appearance on CNBC‘s ‘Power Lunch,’ describing how the instrument strips the first 10% to 11% of annual Bitcoin returns and passes that yield to credit investors. Strategy is betting that Bitcoin will appreciate by more than 11% annually, meaning equity holders stand to benefit from any gains above that threshold. STRC is described as ‘way overcollateralized,’ with Saylor expressing confidence that common stockholders will ultimately profit while credit investors receive their fixed yield.
In March, Strategy deployed approximately $1.2 billion raised through at-the-market sales of STRC to purchase Bitcoin, though it subsequently shifted back to selling common stock for its most recent acquisition. Strategy’s common stock, traded under the ticker MSTR, is down 19% this year and nearly 71% from its July 2025 all-time high of $456, according to Google Finance. Stretch shares, by contrast, pay annual dividends of roughly 11.5%, a rate higher than US Treasurys, which currently yield around 4%.
Unlike traditional bonds, STRC shares are perpetual instruments with no maturity date, meaning Strategy is never obligated to return principal to investors. Holders can retain the shares indefinitely while collecting dividends, and the dividend rate is variable, adjusting monthly in response to market conditions. The structure is designed to keep the trading price anchored near $100, making it function more like a high-yield savings account than a volatile equity or crypto asset.
Strategy signaled in February that it would lean more heavily on preferred stock sales to fund Bitcoin acquisitions. The company went further this week, disclosing plans through a Securities and Exchange Commission filing to raise up to $21 billion by selling common stock and an additional $21 billion through new at-the-market programs for Stretch shares. The dual capital-raising initiative underscores the central role STRC now plays in Strategy’s broader Bitcoin accumulation strategy.
Originally reported by CoinTelegraph.
