New York, February 12, 2026, 11:01 EST — Regular session
- Strategy shares fell about 0.8% to $125 in late morning trade, even as bitcoin edged higher
- CEO Phong Le said the firm will shift more funding from common equity toward perpetual preferred shares
- Traders are watching for more funding details and the next Stretch dividend record date on Feb. 15
Strategy Inc shares fell on Thursday after CEO Phong Le signaled the bitcoin-heavy company will lean more on perpetual preferred stock to fund future purchases, a pivot investors are reading through for dilution risk and staying power. The stock was down about 0.8% at $125.06 in late morning trading. (TradingView)
The preferred instrument Strategy has been marketing — “Stretch” (STRC) — is a perpetual preferred share, meaning it has no maturity date and sits above common stock in the payout line while paying dividends. On its website, Strategy says Stretch’s dividend rate resets monthly and is currently 11.25%, a structure it says is designed to keep trading near its $100 par value; the next record date is Feb. 15 and the next payout date is Feb. 28. The company also flags that the dividend is not guaranteed and that its preferred securities are not collateralized by its bitcoin holdings. (Strategy)
Bitcoin itself was up about 1% at roughly $67,099, underscoring how quickly Strategy’s funding mechanics can take over the tape even when the underlying coin is steady.
In a securities filing dated February 9, Strategy said it bought 1,142 bitcoins for $90.0 million between Feb. 2 and Feb. 8 at an average price of $78,815. It reported total holdings of 714,644 bitcoins at an average cost of $76,056 per coin, and said the purchases were funded with proceeds from sales under its at-the-market (ATM) program — a setup that lets companies sell shares into the market over time. (SEC)
A separate filing dated February 2 showed the same playbook a week earlier: Strategy said it acquired 855 bitcoins for $75.3 million in the Jan. 26 to Feb. 1 period and reported 713,502 bitcoins held as of Feb. 1. That filing also disclosed a cash dividend of $0.9375 per Stretch share for the month ending Feb. 28, reflecting an 11.25% annual rate, and said the company expected the payment to be treated as return of capital for U.S. federal tax purposes to the extent of a holder’s basis — meaning it can reduce an investor’s cost basis rather than being taxed immediately as income. (SEC)
Michael Saylor, Strategy’s executive chairman, has tried to tamp down the recurring worry that a deep bitcoin slide could force sales. “We are not going to be selling,” Saylor said in a CNBC interview cited by Investopedia, adding the firm planned to keep buying bitcoin “every quarter forever.” Galaxy Digital analyst Beimnet Abebe, also quoted by Investopedia, called the setup “pretty bad” for risk appetite if investors keep stepping away from high-volatility trades. (Investopedia)
Other crypto-linked stocks were mixed. Coinbase fell about 5.2%, Marathon Digital was roughly flat, and Riot Platforms gained about 1.5%.
Strategy — formerly MicroStrategy — still sells enterprise analytics software, but its market story has been dominated by its status as one of the largest corporate holders of bitcoin. The company is based in Tysons Corner, Virginia, according to its Reuters company profile. (Reuters)
But the leverage cuts both ways. Strategy’s beta is elevated and short interest remains heavy — Finviz shows about 32.38 million shares short, roughly 12% of float — which can amplify moves in either direction. A renewed drop in bitcoin, or a tighter window to raise capital on acceptable terms, could pressure the company’s ability to keep adding to its bitcoin position without hitting common shareholders or stretching dividend obligations. (Finviz)
Next up, investors will look for details on how quickly Strategy can scale preferred issuance versus common stock sales, and for any fresh disclosures on additional bitcoin buying. The nearer-term marker is Stretch’s Feb. 15 record date ahead of the Feb. 28 dividend payout, a test of whether the preferred product stays anchored as designed while the common stock keeps swinging.
