Strategy CEO: The company will issue more perpetual preferred shares to alleviate investors' concerns about stock price volatility

According to Bloomberg, Strategy CEO Phong Le stated in an interview that the company will issue more perpetual preferred shares to alleviate investor concerns about the volatility of its stock price. Le mentioned that the company provides investors with a tool through the issuance of perpetual preferred shares (product name "Stretch") that offers "exposure to digital capital while avoiding volatility risk."

The product has a monthly reset dividend yield, currently at 11.25%, aimed at stabilizing its trading price around the $100 par value. So far, preferred shares have made up a small portion of Strategy's financing. The company has sold approximately $370 million in common stock and $7 million in perpetual preferred shares to fund its recent Bitcoin purchases over the past three weeks.

Le's statement aligns with the previous public remarks of Executive Chairman Michael Saylor. Saylor stated in an interview with CNBC on Tuesday that concerns about the market forcing the company to sell its holdings due to Bitcoin's decline are "unfounded," and reiterated the company's plan to "continue buying Bitcoin every quarter."