Stretch (STRC) Stock Risk Analysis


✨ Risks of Stretch (STRC) Stocks
ℹ️
Dividend payment not guaranteed
The monthly dividend (currently 11.25%) depends on the company's cash flow. It may not be paid or the rate may decrease significantly. Indirect dependence on Bitcoin price
Not directly collateralized, but the company's large Bitcoin holding (713,000+ BTC) affects the balance sheet. If Bitcoin falls sharply, liquidity and reserves will be under pressure. Risk of price-to-par value deviation
The rate is adjusted monthly to keep it close to the $100 nominal value. In case of Bitcoin weakness, the price falls below $100, yields decrease, or confidence diminishes.
Long-term sustainability questionable
In the short-to-medium term, $2.25 billion in reserves cover approximately 2.5 years. In the long term, Bitcoin performance and access to new capital are critical; failure will cause problems.
High leverage and company risk
The Strategy's model is based on debt + preferred + Bitcoin accumulation. Interest rates, inflation, or market changes may create pressure. Regulatory and Tax Uncertainty
Changes in Bitcoin regulations or impacts tax treatment (return of capital) would be detrimental. Liquidity and Selling Difficulty
Selling the stock quickly may become difficult under current market conditions. General
High returns are attractive but speculative. While volatility is designed to be low, risk increases during a Bitcoin downturn. Do your own research before making an investment decision.
#StrategyToIssueMorePerpetualPreferreds
BTC-1,47%
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#StrategyToIssueMorePerpetualPreferreds
Strategy Plans to Issue More Perpetual Preferred Shares
✨Strategy Inc. (formerly MicroStrategy) announced, in a statement by CEO Phong Le dated February 12, 2026, that it plans to issue more perpetual preferred shares (specifically the "Stretch" product) to alleviate investor concerns about stock volatility.
With this strategy, the company aims to reduce its reliance on common stock sales and strengthen its capital structure while continuing to finance Bitcoin purchases. Stretch perpetual preferreds aim to trade around $100 nominal value, offering a variable dividend of 11.25% with a monthly reset; thus, providing investors with digital asset exposure while limiting volatility.
This transition will provide long-term funding flexibility by focusing on "preferred capital" in 2026 and making its Bitcoin accumulation strategy sustainable. The market views this move as an innovative reflection of the company's commitment to Bitcoin-focused growth.
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