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Strategy to issue more preferred stock to reduce volatility

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Strategy says BTC would need to fall to $8K to strain debt

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

Summary

  • Strategy is issuing more preferred shares to fund Bitcoin purchases.
  • The “Stretch” stock pays an 11.25% variable dividend and aims for price stability.
  • The move targets investors seeking crypto exposure with lower risk.

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.

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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.

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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.

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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.

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Crypto World

Now Defi quantum computing launches, helping BTC, XRP users earn up to $20k daily

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Bitcoin Core maintainers face shake-up as Gloria Zhao revokes PGP key

Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.

NOW DeFi launches quantum cloud mining as Bitcoin consolidates and XRP liquidity rises.

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Summary

  • Bitcoin and XRP consolidation increases risks for spot holders, driving demand for alternative yield strategies.
  • NOW DeFi launches “quantum computing cloud mining” to deliver automated returns without relying on market direction.
  • The platform converts crypto into cloud hashrate, enabling passive income without hardware or active trading.

As Bitcoin (BTC) enters a high-level, wide-ranging consolidation zone driven by global macroeconomic factors, and Ripple (XRP) sees increasing liquidity in cross-border payments, the crypto asset market is undergoing a new paradigm shift. 

For the massive number of spot holders, the time cost of “holding and waiting for a pump” and the risks of market pullbacks are rising sharply.

Against this backdrop, NOW DeFi, the world’s leading automated wealth ecosystem, officially announced today the full launch of its highly anticipated “Quantum Computing Cloud Mining” architecture. 

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By introducing exponentially advanced quantum computing power, NOW DeFi has successfully broken through the profit bottlenecks of traditional spot holding, providing global crypto investors with a brand-new path to ignore market bulls and bears, offering stable hashrate dividends of up to $20,000 per day.

In-depth market analysis: The “profit vacuum” for spot holders

According to Q1 on-chain data and technical analysis (TA), both BTC and XRP exhibit strong “supply lock-up” characteristics. However, during volatile price wicks, retail investors’ spot holdings are highly susceptible to paper losses. 

The vast majority of investors’ crypto assets remain in a “dormant” state, unable to generate compound interest while enduring immense psychological pressure from constantly monitoring charts. Furthermore, traditional DeFi staking yields have plummeted, leaving the market in urgent need of a high-return alternative backed by strong technical barriers.

NOW DeFi’s disruptive innovation: How does quantum computing generate yield?

To address this industry pain point, NOW DeFi integrates cutting-edge quantum computing with high-frequency node verification technology. The core advantage of quantum hashrate lies in its ability to process massive hash collisions and cross-market arbitrage models in mere milliseconds. 

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NOW DeFi “fragments” this top-tier computing power into cloud-based contracts. Holders of BTC, XRP, and other mainstream assets simply need to convert their assets into NOW DeFi’s hashrate fuel to earn 100% fully automated hashrate outputs — requiring zero hardware investment or market monitoring.

Core hashrate contract matrix: A wealth path from retail to institutional

To meet the needs of investors of all sizes, NOW DeFi has unveiled its latest quantum hashrate yield model. Data shows that top strategic investors can achieve explosive wealth growth through compound interest and high-frequency hashrate clusters:

Strategy Level Entry Threshold(USD) Strategic Cycle(Days) Est. Total Strategic Yield(USD) Strategy Positioning
Entry-Level Quantum $100 2 $8 Algorithm trial, ultra-short-term arbitrage
Standard Quantum $1,500 10 $235.5 Mid-term trend capture, compound growth
Advanced Quantum $5,000 15 $1,215 Deep learning-driven, long/short hedging
Elite Quantum $25,000 25 $11,250 Institutional execution logic, high-frequency arbitrage
Quantum Strategy $90,000 20 $36,000 Top-tier hashrate cluster, full market coverage

(For more strategy details and real-time dynamic data, please visit the official website)

How to earn passive income via NOW DeFi’s quantum hashrate?

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NOW DeFi was designed to make cutting-edge quantum technology accessible to everyone. Eliminating tedious hardware configurations and complex trading models, any investor can unlock exponential wealth growth in just four simple steps:

  1. Register and claim a welcome bonus: Instantly receive a $22 welcome bonus. Register today to claim a cash reward and start the passive income journey with zero risk.
  2. Select and Activate a Hashrate Contract: Choose a quantum hashrate package that suits a particular capital size. Once a strategy package is purchased, the system takes over immediately.
  3. 100% Fully Automated Yield: Say goodbye to staring at plunging charts. Without any market monitoring, profits will be automatically and accurately credited every 24 hours.
  4. Ultimate Liquidity and Flexible Withdrawals: Take full control of wealth. Once the account balance reaches $100, it can be withdrawn directly to a crypto wallet or reinvested to unlock exponential compound interest. Absolutely transparent, with zero hidden fees, no maintenance fees, and no surprise charges—100% of the money you earn belongs to you.

About NOW DeFi: The ultimate consensus for global safe-haven capital

NOW DeFi provides an elite-level automated wealth accumulation ecosystem, with the core vision of helping global investors stop losses in the spot market and achieve maximum returns with complete peace of mind. In the unpredictable crypto market, NOW DeFi has built a powerful global safe-haven consensus:

  • Global Safe-Haven Consensus: Trusted by over 10 million smart investors across more than 198 countries and regions who have successfully broken free from market volatility.
  • Fortress-Like Security: Equipped with industry-leading dual-layer protection from McAfee® and Cloudflare®, allowing you to sleep soundly knowing your funds are secured by military-grade encryption.
  • Seamless Multi-Asset Support: Offers unparalleled flexibility with direct settlement in top digital assets, including XRP, BTC, ETH, SOL, DOGE, USDC, USDT, BNB, and BCH.

Conclusion and action guide: Seize the early-adopter dividends of the quantum era

The ultimate goal of technical analysis is to guide trading. In 2026, as crypto market trends become increasingly complex, stopping senseless gambling in the spot market and shifting assets to the highly certain quantum hashrate track has become the consensus among smart investors.

For more information, please visit the official NOW DeFi website and download the application.

Email: [email protected]

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Disclosure: This content is provided by a third party. Neither crypto.news nor the author of this article endorses any product mentioned on this page. Users should conduct their own research before taking any action related to the company.

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Crypto World

Australia to Mandate Crypto Licensing Under New Law

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Australia to Mandate Crypto Licensing Under New Law

Australia has passed legislation that will bring many digital asset platforms and tokenised custody platforms under the country’s financial services licensing regime.

The Corporations Amendment (Digital Assets Framework) Bill 2025 has now cleared both houses of the Australian Parliament, according to parliamentary records, marking the biggest step yet in Canberra’s push to create a dedicated regulatory framework for digital assets.

Introduced in November 2025, the bill amends the Corporations Act and ASIC Act to regulate digital asset platforms and tokenised custody platforms, with the stated aim of improving consumer protection, market integrity and regulatory certainty.

The bill now awaits royal assent, the final step before becoming law. It is set to take effect 12 months after assent, with an additional transition period for businesses to comply.

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The bill requires crypto operators, including exchanges and custody platforms, to obtain an Australian Financial Services Licence (AFSL) from the Australian Securities and Investments Commission (ASIC), the country’s financial regulator.

Source: DECA

The Digital Economy Council of Australia (DECA), an industry group representing Australia’s digital economy, praised the development in a statement on LinkedIn.

“For the first time, we have a legislative framework that directly addresses digital asset platforms and it provides long-awaited clarity for businesses, investors and regulators, and marks a shift from uncertainty toward implementation,” DECA said.

Related: Australia fines local Binance unit $6.9M over client onboarding failures

Addendum clarifies treatment of MPC and crypto custody under new law

Jazz Ozvald, former assistant director of digital asset policy at the Commonwealth Treasury, took to LinkedIn to express delight at the milestone in passing the bill.

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He noted that the government also tabled an Addendum to the Explanatory Memorandum, which includes additional detail about how the bill is intended to apply where digital tokens are factually controlled through multi-party computation (MPC).

Source: Jazz Osvald

MPC is a cryptographic technology used to secure crypto wallets by splitting control between multiple parties, so no single person has full control. Transactions can only be approved when enough parties work together, making it harder for funds to be stolen or misused.

Related: Google targets 2029 post-quantum migration as threats draw nearer

The addendum says that the law only applies to platforms that actually hold crypto for customers, rather than just providing technology that helps control it, even in shared-control setups like MPC.

Magazine: Nobody knows if quantum secure cryptography will even work

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