Strategy CEO Phong Le positioned the company’s preferred stock offerings as vehicles for stealth Bitcoin adoption during a November 11 interview, targeting investors who would never directly purchase the underlying asset.
Le described how the company’s preferred stocks appeal to both Gen Z retail investors on Robinhood and retirees seeking income without equity volatility.
They pay dividends ranging from 8% to 10.25%, backed by Strategy’s Bitcoin treasury. It creates what Le called a product-market fit between Bitcoin-backed securities and risk-averse savers.
Preferred Stocks Target Bitcoin Skeptics
Preferred stocks are hybrid securities that sit between debt and equity in a company’s capital structure.
They typically pay fixed dividends and have priority over common shares in bankruptcy, but lack voting rights and upside participation compared to common stock.
Strategy launched four Bitcoin-backed preferred offerings over the past eight months, with the most recent called STRC providing 10.25% monthly dividends.
Le explained that a 25-year-old with $10,000 in savings previously had few attractive options beyond bank accounts earning near-zero or money markets at 4% pre-tax yields.
They offer double-digit yields in a tax-advantaged structure backed by Bitcoin appreciation. Investors are not required to understand or believe in the underlying asset.
Le noted that retirees and cautious savers who would never purchase MSTR shares or self-custody Bitcoin suddenly become comfortable with the preferred structure because it resembles traditional fixed-income products.
Robinhood listed Strategy’s preferreds despite never previously supporting preferred securities on its platform, requiring technical development to handle dividend-paying instruments.
Le attributed the move to customer demand from Robinhood’s retail base seeking yield products beyond equities.
2026 Bank Custody Bet Drives Strategy
Le made his boldest prediction when asked about Bitcoin’s future adoption trajectory, stating a central US bank will offer Bitcoin custody services by the end of 2026.
Le described this milestone as more important than price targets, arguing that institutional custody through traditional banks represents the actual barrier to mainstream adoption.
He noted that telling someone unfamiliar with Bitcoin to buy through Coinbase, use a hardware wallet, or purchase an ETF remains too complicated for 98% of people who operate primarily through traditional bank accounts.
Strategy is building its entire treasury operation, preferred stock program, and cultural brand positioning for this inflection point.
Le explained that when institutions like JPMorgan Chase, Bank of America, or Wells Fargo offer Bitcoin custody to retail customers, it enables both corporate and individual balance sheets to hold the asset with traditional counterparty risk profiles.
The bank custody milestone unlocks Bitcoin-backed lending at scale, allowing customers to borrow against holdings through existing banking relationships.
Le compared this to the buy-borrow-die strategy used with equity portfolios, but applied to a new asset class in a highly regulated environment.
Strategy’s Moat in Bitcoin News
Strategy currently operates as the largest Bitcoin treasury company by a factor of ten compared to competitors.
It holds over 440,000 Bitcoin acquired through a mix of equity issuance, convertible debt, and preferred stock offerings.
Le acknowledged that Strategy’s preferred stocks create non-dilutive Bitcoin acquisition vehicles that competitors cannot easily replicate due to lack of scale, execution history, and management credibility.
When Strategy issues $2.5 billion in preferred stock and immediately converts proceeds to Bitcoin at 100% BTC yield with zero common share dilution, it strengthens both the common stock and senior securities in the capital structure.
The question for Bitcoin news coverage becomes what happens to Strategy’s competitive position when major banks enter custody and lending markets.
If JPMorgan allows retail customers to custody Bitcoin, earn yield, and borrow against holdings through a mobile app interface, Strategy loses its current advantage as the primary institutional-grade vehicle for Bitcoin exposure.
Le suggested that Strategy’s diversified product suite, encompassing common stock, convertible debt, and multiple preferred tranches, creates an ecosystem rather than a single product vulnerable to disruption.
The company’s 35-year history of software innovation, combined with its 1,500-person enterprise analytics business, provides operational stability independent of Bitcoin’s price fluctuations.
Strategy’s bet assumes that institutional custody enables rather than threatens its business model. More custody options drive Bitcoin adoption, which increases the asset’s value and makes Strategy’s leveraged treasury model more valuable rather than obsolete.
The 2026 timeline represents either prescient positioning or risky overconfidence, depending on the regulatory clarity provided by the CLARITY Act, the implementation of the GENIUS Act, and the willingness of banking regulators to approve custody operations.
Le’s prediction suggests that Strategy is building infrastructure for a post-custody world rather than defending against it.