This is about the perpetual preferred shares Stretch (STRC) with a yield of 11% that Strategy began issuing in July. STRC is the fourth issuance of the company's preferred securities. According to Fong Le, the issuance of preferred shares to replenish the bitcoin reserve helps avoid the dilution of the securities' value that typically occurs when new common shares are issued.
Fong Le stated that promoting preferred shares takes time and active marketing efforts, but he hopes that within a year Stretch will become one of the company's main products.
In early February, amid the collapse of the crypto market, Stretch fell below $94. At the close of trading on Wednesday, February 11, STRC returned to its nominal value of $100 for the first time since mid-January. The CEO said that now that the shares are trading at par, the company can resume issuing securities to finance new bitcoin purchases.
Strategy is not currently planning to diversify its business or acquire less successful companies to gain access to their bitcoin reserves at a reduced price, Fong Le reported. According to him, in any new market—be it electric vehicles or artificial intelligence—it is important to focus on the core product. Acquiring another company with a stock of digital assets, even at a discount, would, in the CEO's opinion, "be a distracting maneuver."
Recently, Strategy acquired 1142 $BTC for $90 million. The company now has 714,644 BTC on its balance sheet. The purchase was fully financed by the sale of the company's common shares.
