TLDR:

• Strategy’s “Stretch” preferred shares offer 11.25% variable dividend with monthly resets to stabilize price
• The company holds 714,000 Bitcoin worth $48 billion but stock dropped 73% since November 2024 record high
• Preferred shares represent just $7 million of funding versus $370 million in common stock sales recently
• Bitcoin fell below $67,000, down nearly 50% from October peak of $125,260, pressuring Strategy’s model

Strategy perpetual preferred stock will see increased issuance as CEO Phong Le addresses mounting investor concerns over share price volatility.

The Bitcoin treasury company announced plans to expand its “Stretch” product offering, which provides digital asset exposure with reduced risk through a monthly reset dividend mechanism.

Currently, the preferred shares represent a modest portion of Strategy’s capital structure, with $7 million issued compared to $370 million in common stock for recent Bitcoin acquisitions.

New Preferred Share Product Targets Risk-Averse Investors

Strategy has engineered the Stretch preferred shares to appeal to investors seeking digital asset exposure without extreme price swings.

The product features a variable dividend rate currently set at 11.25%, according to Le’s interview with Bloomberg Television. The monthly rate adjustments serve a specific purpose: encouraging the security to trade near its $100 par value.

“We’ve engineered something to protect investors who want access to digital capital without that volatility,” Le said in the Bloomberg Television interview.

This structure differs markedly from the company’s common stock, which has experienced severe price fluctuations tied to Bitcoin movements.

The preferred shares have accounted for just $7 million of Strategy’s recent funding activities. Meanwhile, common stock sales totaling $370 million have financed the company’s last three weekly Bitcoin purchases.

Le emphasized the product’s protective features during his television appearance, noting it provides access to digital capital without volatility.

The company holds more than 714,000 Bitcoin currently valued at approximately $48 billion. However, the common shares used to fund ongoing cryptocurrency purchases have been trading erratically.

Strategy’s funding model previously allowed the company to issue new stock at premiums above its Bitcoin holdings value.

That premium has essentially disappeared, creating challenges for the capital-raising cycle. Tightening capital markets have further complicated the company’s funding strategy.

Market Downturn Pressures Treasury Model Performance

Bitcoin’s price decline has directly affected Strategy’s financial performance and stock valuation. The cryptocurrency fell below $67,000 on Wednesday, representing nearly a 50% drop from its October peak of $125,260. Strategy’s common stock mirrored this decline, falling 5% on Wednesday alone.

Year-to-date performance shows Strategy shares down 17% in 2026. More dramatically, the stock has plunged 73% since reaching record highs in November 2024. The company reported a net loss of $12.4 billion for the fourth quarter.

Cryptocurrencies have struggled since October’s liquidation wave damaged market confidence. The downturn has stalled Strategy’s previously successful model of issuing stock, purchasing Bitcoin, and repeating the cycle.

That approach worked when shares traded substantially above the company’s cryptocurrency holdings value.

Executive chairman and co-founder Michael Saylor addressed concerns about potential forced sales during a CNBC appearance Tuesday.

He dismissed worries that declining Bitcoin prices might compel the company to liquidate holdings as “unfounded.”

Saylor confirmed Strategy intends to continue purchasing Bitcoin every quarter despite current market conditions. The company remains committed to its Bitcoin acquisition strategy regardless of short-term price movements.

Strategy, formerly known as MicroStrategy, plans to issue additional perpetual preferred stock in a bid to ease investor concerns over the volatility of its common shares, according to its chief executive officer.

The announcement comes as Strategy’s stock, trading under the ticker MSTR, has fallen nearly 17% year to date.

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In a recent interview with Bloomberg, Strategy CEO Phong Le addressed Bitcoin’s price swings. He attributed its volatility to its digital characteristics. When BTC rises, Strategy’s digital asset treasury plan drives outsized gains in its common stock. 

Conversely, during downturns, the shares tend to decline more sharply. He noted that Digital Asset Treasuries (DATs), including Strategy, are engineered to follow the leading cryptocurrency.

To address this dynamic, the company is promoting its perpetual preferred shares, branded “Stretch.” 

“We’ve engineered something to protect investors who want access to digital capital without that volatility and that’s Stretch,” Le told Bloomberg.” To me, the story of the day is Stretch closes at $100 exactly how it was engineered to perform.”

The preferred shares offer a variable dividend, currently set at 11.25%, with the rate reset monthly to encourage trading near the $100 par value.

It’s worth noting that preferred stock has so far represented only a small portion of Strategy’s capital-raising activity. The company sold approximately $370 million in common stock and about $7 million in perpetual preferred shares to fund its previous three weekly Bitcoin purchases.

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However, Le said, Strategy is actively educating investors about what preferred shares can do.

“It takes some seasoning. It takes some marketing,” he said. “This year, we have seen extremely high liquidity with our preferreds, about 150 times other preferreds, and as we go throughout the course of this year, we expect Stretch to be a big product for us. We will start to transition from equity capital to preferred capital.”

MicroStrategy’s Bitcoin Bet Under Pressure With Shares Trading Below Net Asset Value

The shift could prove important as Strategy’s traditional funding model faces pressure. Strategy continues to expand its Bitcoin holdings, purchasing more than 1,000 BTC earlier this week. As of the latest data, the firm holds 714,644 BTC.

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However, the recent decline in Bitcoin’s price has weighed heavily on the company’s balance sheet. At current market prices of around $67,422 per coin, Bitcoin is trading well below Strategy’s average purchase price of approximately $76,056. As a result, the company’s holdings reflect an unrealized loss of roughly $6.1 billion.

The company’s common stock has mirrored that decline, falling 5% on Wednesday alone. MSTR is roughly down 17% so far this year. In comparison, Bitcoin has fallen more than 22% over the same period.

As mentioned before, Strategy’s Bitcoin accumulation strategy has relied more on equity issuance. A key metric in this model is its multiple to net asset value, or mNAV, which measures how the company’s stock trades relative to the value of its Bitcoin per share.

According to SaylorTracker data, Strategy’s diluted mNAV was approximately 0.95x, indicating the stock traded at a discount to the Bitcoin backing each share.

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That discount complicates the company’s approach. When shares trade above net asset value, Strategy can issue stock, purchase additional Bitcoin, and potentially create accretive value for shareholders. When shares trade below net asset value, new issuance risks diluting shareholders instead.

By increasing its reliance on perpetual preferred stock, Strategy appears to be adjusting its capital structure to sustain its Bitcoin acquisition strategy while attempting to address investor concerns over volatility and valuation pressure.

For MSTR shareholders, the shift toward perpetual preferred stock could reduce dilution risk. By relying less on common equity issuance, Strategy may preserve Bitcoin per share and limit pressure from discounted share sales. 

However, the move also introduces higher fixed dividend obligations, increasing financial commitments that could weigh on the company if Bitcoin remains under pressure. Ultimately, the plan reshapes the risk profile rather than eliminating the underlying volatility tied to its Bitcoin treasury.

Britain is positioning itself to become the first G7 nation to issue sovereign debt on the blockchain, appointing banking giant HSBC and law firm Ashurst to steer a digital gilt trial expected this year, according to the Financial Times.

The Treasury’s selection of the two firms aims to quell growing criticism that the U.K. has been dragging its feet on tokenized government bonds. While Chancellor Rachel Reeves unveiled the pilot plan in late 2024, other jurisdictions including Hong Kong have already crossed the finish line with their own digital sovereign issuances.

The pilot aims to slash settlement time and operational costs for market participants. The experiment will run within the Bank of England’s “digital sandbox,” a controlled environment where financial innovations can operate under relaxed regulatory constraints.

HSBC has experience in digital debt offerings, having orchestrated over $3.5 billion in digital bond issuances through its proprietary Orion blockchain — including Hong Kong’s $1.3 billion green bond last year, one of the largest tokenized debt sales globally.

On Wednesday, Hong Kong Financial Secretary Paul Chan Mo-po said the multicurrency offering helped boost liquidity on the product.

“We will regularize the issuance of tokenized green bonds,” he said at CoinDesk’s Consensus Hong Kong conference, which could support further adoption.

TLDR:

• XRP reached first relief target at $1.52 after RSI hit multi-year lows during last week’s selloff 
• Critical $1.65 resistance zone will determine if XRP continues rally or drops toward $0.90 support 
• Ripple partners with Aviva Investors to tokenize real-world assets on XRP Ledger throughout 2026 
• Analysts warn against panic selling as XRP flirts with correction lows and potential bullish setup
  

XRP price action shows signs of relief following last week’s sharp decline that pushed technical indicators to extreme levels.

Market analysts track the $1.65 resistance zone as a critical threshold for the digital asset’s near-term direction. A failure at this level could open the door to targets as low as $0.90.

The current phase presents multiple scenarios for traders watching key support and resistance zones.

Critical Price Levels Define XRP’s Next Move

XRP has entered a Wave 4 relief phase after last Thursday’s massive selloff tested market sentiment. Technical analyst CasiTrades noted the decline pushed RSI to multi-year lows across trading platforms.

The subsequent bounce has already reached the first Wave 4 target near $1.52. This price point coincides with the 0.382 retracement level and macro 0.65 fibonacci zone.

The market now approaches a decisive juncture at the $1.65 resistance area. This level represents the 0.5 retracement and macro 0.618 fibonacci extension.

The asset’s ability to flip this zone into support will determine the next directional move. Technical patterns suggest two distinct paths forward based on price behavior at current levels.

A rejection at $1.65 could trigger another wave down to lower support zones. CasiTrades outlined potential targets at $1.09 and approximately $0.90 in this scenario.

These levels would mark the completion of a corrective structure from recent highs. The analyst emphasized that RSI has reset enough to allow for such a move.

However, the relief bounce offers an alternative bullish scenario for market participants. If XRP successfully reclaims $1.65 and holds it as support, buying pressure could increase.

Traders would then wait for confirmation through a back-test of this support level. The analyst cautioned against panic selling given the asset’s proximity to correction lows.

Ripple Partnership Adds Fundamental Support

Ripple announced a collaboration with Aviva Investors to tokenize real-world assets on XRP Ledger. Reece Merrick from Ripple shared the development, marking the first partnership with a European investment management firm.

The initiative will bring traditional fund structures to the blockchain throughout 2026. Aviva Investors cited the ledger’s speed, cost efficiency, and sustainability as key factors.

The partnership addresses growing institutional interest in blockchain-based asset management solutions. Traditional finance firms continue exploring distributed ledger technology for operational advantages.

XRP Ledger provides the infrastructure necessary for large-scale tokenization projects. European investment managers show increasing willingness to adopt blockchain platforms.

Asset tokenization represents a expanding sector within the digital asset industry. The collaboration aims to bridge institutional finance with blockchain utility at scale. Real-world assets moving onto public ledgers could drive long-term adoption metrics. This development provides fundamental support independent of short-term price fluctuations.

The announcement comes as XRP navigates technical correction levels on price charts. Fundamental developments often diverge from immediate market sentiment during volatile periods.

Long-term investors may view the partnership as validation of the ledger’s institutional appeal. Technical traders meanwhile focus on price action to determine entry and exit points.

Strategy is turning to preferred stock to keep buying Bitcoin while easing pressure from market swings.

Strategy is expanding its use of preferred stock as it looks for new ways to fund Bitcoin purchases while reducing pressure from market volatility. 

The move comes as the company’s share price continues to closely track swings in the cryptocurrency market.

A new approach to managing risk

In a Feb. 12 interview with Bloomberg, chief executive officer Phong Le said the company is offering more perpetual preferred shares to attract investors who want exposure to digital assets without extreme price changes. The product, known as “Stretch,” pays a variable dividend that is adjusted each month.

The current dividend rate stands at 11.25%. The structure is designed to keep the stock trading close to its $100 par value. This helps limit sharp price movements that are common in Strategy’s regular shares.

Preferred shares sit above common stock in the company’s capital structure but below debt. They usually offer a steady income and priority on dividends, while giving up voting rights. This makes them appealing to investors who value stability over rapid growth.

Funding Bitcoin while limiting volatility

Over the past three weeks, Strategy raised about $370 million through common stock sales and another $7 million through preferred shares. The funds were used to buy more Bitcoin (BTC), pushing the company’s total holdings above 714,000 BTC, worth roughly $48 billion.

For years, Strategy’s business model has been built around using capital markets to accumulate Bitcoin. As a result, its stock often behaves like a leveraged version of the cryptocurrency. When Bitcoin rises, the stock tends to surge. When prices fall, losses are often amplified.

Bitcoin has dropped around 50% from its recent peak, which has weighed heavily on Strategy’s shares. This slowdown has made it harder for the company to rely only on common stock sales for funding.

Preferred stock offers another option. The steady dividend and price controls are meant to attract institutions such as pension funds, insurers, and banks. These investors often prefer predictable returns rather than high-risk exposure.

Co-founder Michael Saylor has repeatedly said the company has no plans to sell its Bitcoin. Strategy intends to continue buying more each quarter, regardless of market conditions.

Analysts say preferred shares also strengthen the company’s balance sheet. Compared with convertible bonds, they reduce refinancing risk and limit sudden dilution for existing shareholders.

Strategy raised about $5.5 billion through several preferred stock offerings in 2025. The latest issuance continues that pattern, showing that the company sees long-term value in this funding model.

TLDR:

• USAD offers privacy-preserving transactions while maintaining regulatory oversight capabilities
• Paxos leverages its established infrastructure to issue compliant stablecoins on Aleo’s platform
• Circle previously partnered with Aleo for USDCx, showing competitive interest in privacy solutions
• Aleo raised $200 million at $1.45 billion valuation from SoftBank, a16z, and Coinbase Ventures

Privacy-preserving USAD stablecoin has launched on the Aleo Layer 1 mainnet through a partnership between Paxos Labs and Aleo Network.

The collaboration introduces digital dollars to a zero-knowledge powered environment. The stablecoin offers privacy and programmability features for enterprise users.

Aleo previously partnered with rival issuer Circle to pilot USDCx. The launch reflects growing institutional demand for privacy-focused blockchain solutions.

Partnership Details and Technical Framework

Paxos Labs will issue USAD using its established infrastructure to meet regulatory oversight requirements. The stablecoin operates on Aleo’s zero-knowledge cryptography platform.

The technology provides end-to-end encryption by default. The platform conceals participant identities, wallet addresses, and transaction amounts from public view.

Aleo COO Leena Im explained the stablecoin design incorporates Paxos’ issuance infrastructure. The system meets “oversight requirements while still protecting sensitive user information,” Im noted.

The balance between privacy and oversight represents a core technical achievement. Selective disclosure capabilities allow for regulatory compliance without compromising user confidentiality.

USAD supports traditional payment functions as well as advanced programmable applications. The stablecoin enables use cases difficult to execute on transparent blockchains.

Target applications include discreet payroll processing, business-to-business payments, and anonymous decentralized finance activities. Furthermore, enterprises can embed trusted digital currency into their platforms.

Paxos Labs co-founder Bhau Kotecha emphasized the strategic value of the collaboration. “Working with Aleo, we are bringing digital dollars into an environment where privacy and programmability are built in from the start,” Kotecha said.

He added that enterprises gain “a way to embed money they can trust.” The executive expects more organizations to deploy custom assets on blockchain platforms.

Kotecha noted that stablecoins continue to impact traditional financial rails. He stated Aleo and its team are “already ahead of the curve” on this development.

The trend toward programmable money reshapes financial infrastructure. Organizations increasingly value privacy-preserving transaction capabilities for commercial operations.

Market Context and Company Background

The launch occurs amid rising interest in institutional-grade privacy solutions for blockchain assets. Businesses want blockchain benefits without exposing sensitive commercial details on transparent networks.

Circle previously selected Aleo to develop USDCx, a privacy-focused version of its flagship token. The competitive landscape shows multiple issuers exploring privacy-preserving stablecoin technology.

Paxos has established experience in the stablecoin sector through partnerships with major platforms. The company previously issued stablecoins for PayPal and Binance.

Moreover, Paxos plays a role in the Global Dollar consortium. The USDG initiative includes Anchorage Digital, Bullish, Kraken, OKX, Robinhood, and World.

Aleo Network launched its mainnet in September 2024 after several years of development. The Layer 1 project raised $200 million in a 2022 Series B funding round.

The company achieved a valuation of $1.45 billion during the financing. SoftBank’s Vision Fund 2 and Kora Management co-led the investment.

The project has attracted backing from prominent investors across the blockchain ecosystem. Notable supporters include a16z, Softbank, Coinbase Ventures, Samsung Next, and Tiger Global.

The investor roster demonstrates confidence in zero-knowledge technology applications. Aleo’s platform aims to enable privacy-focused blockchain solutions for enterprise adoption.

Thailand’s government on Tuesday approved the Finance Ministry’s proposal allowing digital assets to be used as underlying assets in the country’s derivatives and capital markets.

The move aims to modernize Thailand’s derivatives markets in line with international standards, strengthen regulatory oversight and investor protection, and position itself as a regional hub for institutional crypto trading, the Bangkok Post reported.

The country’s Securities and Exchange Commission (SEC) will amend the Derivatives Act to enable these new asset classes, which include Bitcoin (BTC) and carbon credits. 

“The decision to formally recognize digital assets, including cryptocurrencies and digital tokens […] reflects a growing understanding that digital assets are no longer merely speculative instruments, but an emerging asset class with the potential to reshape the foundations of capital markets,” said Nirun Fuwattananukul, chief executive of Binance Thailand.

He added that it was a “watershed moment” for the country’s capital markets, sending a “strong signal” that Thailand is positioning itself as a “forward-looking leader” in Southeast Asia’s digital economy.

Strengthening crypto recognition for investors

Thailand is targeting wealthy institutional investors as it expands its crypto ambitions. The move also aligns with the Stock Exchange of Thailand’s plans to introduce Bitcoin futures and exchange-traded products in 2026. 

Related: Thailand plans crypto ETF rules as institutional interest increases

SEC secretary-general Pornanong Budsaratragoon said the move will “strengthen the recognition of crypto as an asset class, promote market inclusiveness, enhance portfolio diversification, and improve risk management for investors.”

Still no crypto payments in Thailand

Retail trading remains popular in Thailand, with the Kingdom’s largest exchange, Bitkub, seeing daily volumes of $65 million, according to CoinMarketCap.

However, the central bank has outlawed crypto payments, and consumer stablecoin use remains restricted. 

The government launched an app in August for short-term tourists to convert crypto to local currency, but users must undergo stringent Know Your Customer (KYC) and customer due diligence checks, and usage remains restricted to government-approved outlets. 

Thailand launched a campaign in January against so-called “gray money,” targeting crypto as part of an effort to combat money laundering. 

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