Strategy is shifting its funding strategy to preferred stock to continue accumulating during a downturn market.

BlockBeats News, February 12th, Strategy CEO Phong Le stated in a Bloomberg live broadcast that Strategy will start gradually reducing equity financing and instead use preferred stock financing to provide funding for increasing its Bitcoin holdings.

BlockBeats Note: Equity financing directly dilutes existing shareholders' ownership and earnings per share, amplifying losses especially during Bitcoin price drops. However, it has lower costs and no fixed dividend pressure. Preferred stock financing provides a priority right to fixed dividends, does not dilute common stock control and voting rights, and is more stable, attracting conservative investors. However, it entails permanent dividend obligations and relatively higher costs. Strategy's shift to preferred stock financing is aimed at continuing to buy Bitcoin during market volatility while reducing dilution pressure on common shareholders.