New York, February 12, 2026, 11:01 EST — Session underway
- Strategy shares dropped roughly 0.8% to $125 by late morning, despite bitcoin gaining ground
- CEO Phong Le announced the company plans to reallocate more capital from common equity into perpetual preferred shares
- Traders are eyeing upcoming funding details and the next Stretch dividend record date, set for Feb. 15
Shares of Strategy Inc slipped Thursday after CEO Phong Le indicated the bitcoin-focused firm plans to rely more on perpetual preferred stock for future acquisitions. Investors are weighing the move for potential dilution and what it means for the company’s longevity. The stock dipped roughly 0.8% to $125.06 during late morning trading. 1
Strategy’s preferred instrument, called “Stretch” (STRC), is a perpetual preferred share—meaning it doesn’t have a maturity date and ranks above common stock when it comes to payouts, while still paying dividends. According to Strategy’s website, Stretch’s dividend rate resets monthly and currently stands at 11.25%. This setup is intended to keep the share trading close to its $100 par value. The next record date is Feb. 15, with the following payout scheduled for Feb. 28. The company also points out that the dividend isn’t guaranteed and that these preferred securities aren’t backed by its bitcoin holdings. 2
Bitcoin hovered around $67,099, gaining about 1%, highlighting how Strategy’s funding mechanics can swiftly dominate trading action even if the coin itself stays steady.
In a securities filing dated February 9, Strategy revealed it purchased 1,142 bitcoins for $90.0 million between February 2 and 8, with an average price of $78,815 per coin. The company now holds a total of 714,644 bitcoins, acquired at an average cost of $76,056 each. These recent buys were financed through proceeds from sales made under its at-the-market (ATM) program, which allows firms to gradually sell shares into the market. 3
A separate filing dated February 2 revealed a familiar pattern from the week prior: Strategy acquired 855 bitcoins between January 26 and February 1, spending $75.3 million, and reported holding 713,502 bitcoins as of February 1. The same filing announced a cash dividend of $0.9375 per Stretch share for the month ending February 28, translating to an 11.25% annual rate. The company also indicated the payment would likely be treated as a return of capital for U.S. federal tax purposes, up to a holder’s basis—meaning investors could reduce their cost basis instead of facing immediate income tax. 4
Michael Saylor, Strategy’s executive chairman, pushed back against concerns that a sharp bitcoin drop might force the company to sell. “We are not going to be selling,” he told CNBC, as reported by Investopedia, and confirmed the firm plans to keep buying bitcoin “every quarter forever.” On the other side, Galaxy Digital analyst Beimnet Abebe, also cited by Investopedia, described the situation as “pretty bad” for risk appetite if investors continue shying away from high-volatility assets. 5
Crypto-related stocks showed varied movement. Coinbase dropped roughly 5.2%, Marathon Digital held steady, and Riot Platforms climbed around 1.5%.
Strategy, once known as MicroStrategy, continues to offer enterprise analytics software. However, its market narrative is now largely shaped by its position as one of the biggest corporate bitcoin holders. The company operates out of Tysons Corner, Virginia, as noted in its Reuters profile. 6
But leverage runs both ways. Strategy’s beta is high, and short interest stays heavy — Finviz reports around 32.38 million shares short, about 12% of the float — which can magnify swings in either direction. A fresh plunge in bitcoin or a narrower chance to raise capital on favorable terms might strain the company’s ability to keep growing its bitcoin holdings without squeezing common shareholders or stretching dividend commitments. 7
Investors are now eyeing how fast Strategy can ramp up preferred issuance compared to common stock sales, along with any new updates on further bitcoin purchases. The immediate checkpoint is Stretch’s Feb. 15 record date before the Feb. 28 dividend payout—a key test to see if the preferred shares hold steady as intended while the common stock continues to fluctuate.
