Cointime

Download App
iOS & Android

80% of Strategy's ‘Stretch’ buyers are mom-and-pop investors

Validated Individual Expert

Retail investors are reportedly the largest cohort in Strategy’s high-yield, low-volatility “Stretch” shares, which have been used to buy more than $1 billion worth of Bitcoin this year. 

Around 80% of the owners of Strategy’s “Stretch” perpetual preferred shares (STRC) are owned by retail, said Strategy CEO Phong Le on Wednesday.

“Retail investors prefer low-volatility, high-yield digital credit,” he added.

The figure suggests that retail investors are still interested in exposure to Bitcoin, even though it is down about 45% from its all-time high. 

Strategy’s executive chairman, Michael Saylor, has been stepping up sales and marketing of Stretch following the drop in Bitcoin and company stock, pitching the shares as a way to get exposure to BTC without the volatility. 

In March, Strategy used around $1.2 billion from at-the-market sales of STRC to buy Bitcoin, though it switched back to using the sale of common stock in its most recent buy

“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, Saylor said, “the idea is to create an onramp for people who believe Bitcoin is going to be around for the long term, but they can't handle the volatility in the near term.” 

He added that Stretch strips the first 10% to 11% of annual Bitcoin returns and passes it to the credit investor. STRC is “way overcollateralized,” but Strategy is betting that Bitcoin will rise more than 11% per year, and “our equity holders are going to make a fortune,” while credit investors are happy with 11%, he said.

Strategy’s common stock (MSTR) is down 19% this year and almost 71% from its July 2025 all-time high of $456, according to Google Finance. The Stretch shares, meanwhile, pay annual dividends of about 11.5%, higher than US Treasurys, which currently yield about 4%.

The investments are perpetual derivatives, meaning they do not have a maturity date, so Strategy never has to pay investors back like a bond, and they can be held indefinitely, earning dividends. The dividend rate is variable and adjusts monthly with market conditions.

The goal of these adjustments is to keep the trading price anchored near $100, making it behave more like a high-yield savings account than a volatile stock or crypto asset. 

Saylor looks to double down on Stretch

In February, the company said it would rely more on its preferred stock sales to acquire Bitcoin.

It went further this week, revealing plans via a Securities and Exchange Commission filing on Monday to raise up to $21 billion by selling Strategy stock and another $21 billion from Stretch, via new at-the-market programs. 

Comments

All Comments

Recommended for you

  • BTC Surpasses $75,000

    Market data shows that BTC has surpassed $75,000, currently priced at $75,003.04, with a 24-hour increase of 0.85%. The market is experiencing significant volatility, so please ensure proper risk management.

  • Drift Secures $147.5 Million in Funding from Tether for User Recovery

    On April 16, Drift announced that the Drift Protocol has received support from Tether and other partners, with Tether contributing $127.5 million and other partners contributing $20 million to assist in user recovery following the attack on April 1. The support plan includes a $100 million revenue-linked credit line, ecosystem grants, and loans to market makers. Drift will establish a dedicated user recovery pool aimed at gradually addressing the $295 million in outstanding user losses as trading revenues increase. Additionally, Drift will issue independent recovery tokens to affected users, which represent a claim to the recovery pool and can be transferred. Drift is currently working on restarting the protocol and has hired Ottersec and Asymmetric for audits, while migrating the settlement layer from USDC to USDT. The previous attack resulted in the theft of approximately $295 million in assets, while the insurance fund's assets remained unaffected.

  • TAO Falls Below $240

    Market data shows that TAO has fallen below $240, currently priced at $239.9, with a 24-hour decline of 3.62%. The market is experiencing significant volatility, so please ensure proper risk management.

  • US Secretary: Military Ready to Resume Operations if Iran Fails to Reach Peace Agreement

    On April 16, US Secretary of Defense Lloyd Austin stated at a Pentagon press conference on Thursday that if Iran does not agree to a peace agreement, US troops stationed in the Middle East are prepared to resume military operations. "Iran, you can choose a prosperous future, a golden bridge, and we hope you do this for the Iranian people," he said. "But if Iran makes the wrong choice, they will face blockades, and their infrastructure, electricity, and energy will suffer bombings." As part of efforts to pressure Tehran to reach an agreement, the US military is implementing a blockade on all vessels attempting to enter or exit Iran.

  • U.S. Launches Operation 'Economic Fury' Against Iran

    On April 16, U.S. Secretary of Defense Lloyd Austin stated at a press conference that the U.S. Treasury Department is launching an operation codenamed 'Economic Fury' to 'maximize economic pressure on Iran.' (CCTV)

  • US Expands Shipping Blockade Against Iran

    According to a report by Reuters on the 16th, the US military announced that it has expanded the blockade on Iranian shipping materials, now including weapons, ammunition, crude oil, refined oil, steel, and aluminum. (Xinhua News Agency)

  • Abraxas Capital Deposits 1,993 Bitcoins Worth $148.32 Million to Kraken

    On April 16, according to monitoring by Lookonchain, Abraxas Capital (Alpha Bitcoin Fund) has just deposited 1,993 bitcoins, valued at $148.32 million, to Kraken. Since March 14, Abraxas Capital (Alpha Bitcoin Fund) has cumulatively deposited 9,582 bitcoins, worth $691 million, to Kraken, and currently holds 20,337 bitcoins, valued at $1.51 billion.

  • National Cyberspace Administration Continues to Address Online Financial Information Chaos

    On April 16, it was reported that the National Cyberspace Administration continues to rectify the chaos surrounding online financial information. (Xinhua News Agency)

  • China Responds to Trump's Sanctions on Countries Purchasing Iranian Oil

    On April 16, Foreign Ministry spokesperson Guo Jiaqin held a regular press conference. A Reuters reporter asked about U.S. President Trump's statement yesterday, in which he expressed confidence that China would not stop buying Iranian oil. He also mentioned that sanctions would be imposed on countries purchasing Iranian oil. Guo Jiaqin stated that China has always opposed illegal unilateral sanctions that lack international legal basis and are not authorized by the United Nations Security Council. (Beijing Daily)

  • Solana Institute-backed super PAC pours $8 million against Sherrod Brown in Ohio race

    Sentinel Action Fund said it will spend $8 million with its sister advocacy group to back Republican Senator Jon Husted against Sherrod Brown in the upcoming race.