Bitcoin investor Tarun Chitra is warning that the company’s “Stretch” stock, a perpetual preferred stock issued by Bitcoin hoarder Strategy, may collapse due to its high volatility risks. The stock, which offers 11.5% biweekly payouts, has seen its price drop to $74 after its launch just a year ago. Industry experts believe that Strategy’s ability to pay out dividends depends on lenders continuing to give the firm money, but investors are getting nervous.
Strategy’s chairman, Michael Saylor, had promised stable returns with “Stretch,” but its success or failure could have a significant impact on the crypto industry. The company has over $50 billion in Bitcoin on its balance sheet and has seen its stock plummet after it sold Bitcoin in early June. Despite skepticism from investors, some experts believe that Strategy can survive market jitters, citing its ability to raise capital.
Saylor had initially touted “Stretch” as a stable investment option with a guaranteed upside, but now faces backlash from investors who feel betrayed by his promise. As the company tries to assuage market concerns, Saylor acknowledges that volatility tests every capital structure. However, it remains to be seen whether Strategy can weather the storm and maintain investor confidence in its assets.
The article highlights the risks associated with investing in “Stretch” stock and the potential consequences for the crypto industry if Strategy fails to meet investor expectations.
Source: https://fortune.com/crypto/2026/06/29/michael-saylor-strc-strategy-selloff-microstrategy-underwater