The Strategy will focus on leveraging preferred stock financing to buy BTC, aiming to continually increase holdings during a downtrend.

**February 12** Strategy CEO Phong Le said during a Bloomberg live broadcast that the firm will begin gradually cutting back on equity financing and shift to preferred stock financing to fund its growing BTC holdings. **BlockBeats Note:** Equity financing directly dilutes existing shareholders’ ownership and earnings per share (EPS), amplifying losses amid stock price volatility—especially when Bitcoin prices drop. It does, however, have lower costs and no fixed dividend obligations. Preferred stock financing, by contrast, offers priority for fixed dividends, does not dilute common stockholders’ control or voting rights, and attracts conservative investors with more stable funding. That said, it carries the burden of perpetual dividends and relatively higher costs. Strategy’s shift to preferred stock financing is intended to keep buying Bitcoin amid market volatility while easing dilution pressure on its common shareholders.