Michael Saylor, the man behind Bitcoin-holding company Strategy (MSTR) (formerly MicroStrategy), has found yet another way to raise billions for his crypto stash. The company has launched a new preferred stock called “Stretch,” which offers investors a 9% annual payout and no maturity date.
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The offering was first set at $500 million, but was quickly upsized to $2.8 billion due to strong demand. The shares were sold at $90 each, a discount to their $100 face value, to attract more buyers.
How Strategy Finds Cash to Buy Bitcoin
Since 2020, Michael Saylor has been buying Bitcoin regularly. Many investors now see his company, Strategy, as a way to invest in Bitcoin without owning it directly. To raise money, he has used several methods—like selling common stock, taking on debt, and creating new types of preferred shares such as “Strike,” “Stride,” and “Strife.”
For example, in June 2025, Strategy launched a new preferred stock called Stride (STRD). It came with a 10% yearly payout. The company sold about 2.5 million shares at $100 each, raising over $1 billion to buy more Bitcoins.
With this latest move, Strategy now has around 600,000 Bitcoin worth nearly $70 billion.
“Stretch” Shares Come With Flexible Dividends
The new Stretch shares offer a 9% annual dividend, but the company can change the payout every month. If needed, Strategy can increase or decrease the dividend to keep the share price close to $100.
This gives the company more control over its stock price but also creates some uncertainty for investors. Still, many individual investors continue to support Michael Saylor’s approach of raising funds through creative financial tools to buy more Bitcoin.
MSTR Stock Movement and Analyst Updates
Strategy stock has soared about 158% over the past year and 43% year-to-date, fueled by rising Bitcoin (BTC) prices.
The recent analyst coverage of MSTR is bullish. Recently, TD Cowen’s Top analyst, Lance Vitanza, reiterated a Buy rating on the stock and lifted the price target to a street-high $680 (50.77% upside), up from $590. Vitanza noted that Strategy’s use of debt and equity to fund its Bitcoin purchases gives it a clear cost advantage over other players. Looking ahead, the analyst expects MSTR to keep buying more Bitcoin using funds raised through the capital markets.
Is MSTR Stock a Buy, Sell, or Hold?
MSTR is a high-risk, high-reward stock. Currently, Wall Street is bullish on Strategy stock, with a Strong Buy consensus rating based on 11 Buys and one Sell recommendation. The average MSTR stock price target of $541.00 implies about 30.39% upside potential from current levels.
