Strategy, a company actively investing in Bitcoin, has announced the launch of its new preferred stock, Stretch, the fourth of its kind this year. This article examines the key characteristics of the new stock and its attractiveness for investors.
Strategy’s Preferred Stocks
Stretch, Stride, Strike, and Strife are preferred stocks launched to facilitate Strategy’s long-term Bitcoin acquisition. The company has ambitious plans to gather $84 billion in two years, which requires attracting capital through such financial instruments.
Stretch: Features and Conditions
Stretch (STRC) was initially offered on July 21, 2025, with a value of $500 million, later increased to $2.5 billion. Every month, shareholders will receive dividends of 9% per annum, making it unique compared to the company's other stocks that pay dividends quarterly.
Who Gets Paid First?
In the event of financial difficulties, payouts will go first to bondholders, then to preferred stockholders, and finally to common stockholders (MSTR). The priority ranks are Strife, Stretch, Strike, then Stride, while MSTR holders face higher risks.
With the launch of the new preferred stock Stretch, Strategy continues its strategy to attract capital via stocks; however, investors should consider the risks and obligations regarding dividend payments.
