Michael Saylor, the chairman of Strategy (formerly MicroStrategy), is launching a new and audacious financial strategy to fund the company’s Bitcoin acquisitions. Moving away from common stock and convertible bonds, Saylor is now focused on using perpetual preferred stock, which he has named “Stretch,” as his primary funding source.
This new funding model, which Saylor calls the “BTC Credit Model,” is a type of stock that never matures and allows the company to defer dividend payments. It is designed to give the company the financial flexibility to continue amassing its Bitcoin treasury, which is currently valued at $75 billion. The goal is to retire billions in convertible notes over the next four years and potentially raise “100 billion… even 200 billion” if investor demand is strong.
So far this year, Strategy has already raised about $6 billion through four offerings of this preferred stock, with the latest tranche being one of the largest capital raises in the crypto space. This retail-focused approach is unique in a market typically dominated by institutional investors.
However, the strategy is not without risks. Critics point out that these perpetual preferreds require ongoing, high-yield dividend payments (typically 8%-10%), which could become a significant burden, especially since Bitcoin itself does not generate income. This financial strain could be magnified during a market downturn.
August 2025, Cryptoniteuae
