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Strategy’s Stretch preferred stock remains a standout feature, offering 10.5% monthly dividends that are classified as Return of Capital (ROC). This structure allows shareholders to defer taxes, boosting the product’s appeal—especially when compared to traditional fixed-income yields around 4%. The company plans to increase dividends if the Stretch stock trades below $101, rewarding investor confidence and demand.
Software Business and Long-Term Strategy
While the core focus remains Bitcoin accumulation, Strategy’s software segment is growing, with a 10.9% year-over-year revenue increase to over $128 million, with a 65.4% gross margin. This diversification underscores the company's broader vision.