PANews February 12 News, according to Bloomberg, Strategy CEO Phong Le stated in an interview that the company will issue more perpetual preferred shares to alleviate investors’ concerns about its stock price volatility. Le said that the company offers investors a tool called “Stretch,” which provides “exposure to digital capital while avoiding volatility risks” through the issuance of perpetual preferred shares. The product’s dividend rate resets monthly, currently at 11.25%, aiming to keep its trading price stable near the $100 face value. So far, preferred shares have accounted for a small portion of Strategy’s financing. The company has sold approximately $370 million in common stock and $7 million in perpetual preferred shares to fund its Bitcoin purchases over the past three weeks.
Le’s statement is consistent with previous public comments by Executive Chairman Michael Saylor. On Tuesday, Saylor told CNBC that market concerns that Bitcoin’s decline would force the company to sell its holdings are “baseless,” and reiterated the company’s plan to “continue buying Bitcoin each quarter.”
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