Retail investors make up the largest share of buyers in Strategy’s high-yield, low-volatility “Stretch” shares, which have funded more than $1 billion in Bitcoin purchases this year.
About 80% of the holders of Strategy’s “Stretch” perpetual preferred shares (STRC) are retail investors, according to CEO Phong Le.
“Retail investors prefer low-volatility, high-yield digital credit,” he said.
This trend indicates that individual investors remain interested in gaining exposure to Bitcoin, even as it trades roughly 45% below its all-time high.
Meanwhile, Strategy’s executive chairman Michael Saylor has ramped up efforts to promote Stretch shares following declines in both Bitcoin and the company’s stock, positioning them as a less volatile way to gain BTC exposure.
In March, Strategy used approximately $1.2 billion raised through at-the-market STRC sales to purchase Bitcoin, though it has since returned to using common stock sales for its most recent acquisition.
“Normally, the hardest thing in the world to do is to sell a new credit instrument to a retail investor,” Saylor said Thursday at the 2026 Digital Asset Summit in New York.
Speaking on CNBC’s “Power Lunch” on Thursday, Michael Saylor said the goal is to create an entry point for investors who believe Bitcoin has long-term potential but are wary of short-term volatility.
He explained that Stretch captures the first 10% to 11% of Bitcoin’s annual returns and directs it to credit investors. While STRC is heavily overcollateralized, Strategy is betting Bitcoin will outperform that threshold—allowing equity holders to benefit from higher upside while credit investors earn a steady return.
Strategy’s common stock (MSTR) has fallen about 19% this year and nearly 71% from its July 2025 peak of $456, according to Google Finance. In contrast, Stretch shares offer annual dividends of around 11.5%, significantly higher than U.S. Treasurys, which currently yield roughly 4%.
These investments are perpetual instruments with no maturity date, meaning Strategy is not required to repay investors like traditional bonds. Instead, investors can hold them indefinitely and earn dividends, with rates that adjust monthly based on market conditions.
The pricing mechanism is designed to keep shares trading close to $100, making them behave more like a high-yield savings product than a volatile stock or crypto asset.
Saylor has also signaled plans to expand the use of Stretch. In February, the company indicated it would lean more heavily on preferred stock sales to fund Bitcoin purchases. This week, it went further, outlining plans in a filing with the Securities and Exchange Commission to raise up to $21 billion through Strategy stock and another $21 billion through Stretch via new at-the-market programs.
