Skip to navigationSkip to main contentSkip to right columnJeffrey Neal Johnson, MarketBeatSun, July 5, 2026 at 3:15 PM GMT+2 6 min readKey PointsInterested in Strategy Inc Variable Rate Series A Perpetual Stretch Preferred Stock? Here are five stocks we like better.Strategy adopted a Digital Credit Capital Framework that includes a larger U.S. dollar reserve, bitcoin monetization authority and buyback programs.The company raised the dividend rate on its Variable Rate Series A Perpetual Stretch Preferred Stock to 12% and authorized preferred-share repurchases to help close the discount to par.The pivot may reduce near-term liquidity concerns, but Strategy remains highly exposed to bitcoin volatility and preferred dividend obligations.Spot Bitcoin briefly fell below the critical $60,000 support level last week, triggering a wave of retail panic. Yet, shares of Strategy Inc. (NASDAQ: MSTR) rose over 12.6% intraday on volume exceeding 44.93 million shares. This easily outpaced the average of 2.86 million. Retail investors treating Strategy purely as a leveraged Bitcoin (BTC) derivative are left scratching their heads. Institutional capital is aggressively pricing in a profound structural shift.Strategy has shifted from a mostly one-way Bitcoin accumulation model toward a more active capital-management framework. The company recently adopted its Digital Credit Capital Framework and reported a USD Reserve of approximately $2.55 billion, including expected cash proceeds from unsettled ATM sales. This reframes Strategy less as a passive Bitcoin proxy and more as an actively managed capital-structure story.→ MarketBeat Week in Review – 06/29 - 07/03Tactical Liquidity: Escaping the Margin TrapThe market is rewarding this operational pivot because it directly addresses the friction of the legacy treasury model. Trailing 12-month net income deficits of $3.85 billion and a net margin of -2,482% previously trapped Strategy in a restrictive capital structure.The balance sheet itself remains highly solvent, boasting a current and quick ratio of 6.05 alongside a low debt-to-equity ratio of 0.18. By monetizing a sliver of its digital assets to build a cash moat, Strategy is attempting to reduce near-term liquidity pressure while remaining highly exposed to Bitcoin price volatility. Institutional investors are rotating capital toward this de-risked framework, prioritizing active liquidity management over pure commodity exposure.→ 2 AI Stocks That Could Benefit as AI Moves Beyond the Data CenterStrategy Arms Its Preferred SharesThe most actionable angle of this structural transition lies in Strategy's multi-class share structure. Management is deploying a highly targeted capital return program designed to exploit a specific net asset value arbitrage opportunity.Terms and Privacy PolicyEU DSA contactPrivacy & Cookie SettingsMore Info