PANews reported on January 22nd, citing CoinDesk, that Strategy, a Bitcoin treasury firm, has seen its credit risk mitigated as its perpetual preferred stock, valued at $8.36 billion, surpasses its $8.2 billion in convertible debt. This shift in capital structure towards perpetual capital reduces refinancing risk and balance sheet volatility. Convertible bonds carry refinancing risk at maturity and volatility linked to share price, while perpetual preferred stock does not require principal repayment, pays fixed dividends, and has priority between common stock and debt.

The company's preferred stock portfolio comprises four instruments, with total annual dividends of approximately $876 million. In addition, Strategy holds $2.25 billion in reserves to improve dividend coverage and mitigate short-term funding risks. The number of outstanding common shares has increased from 76 million in 2020 to over 310 million, which may alleviate dilution pressure from future debt conversions.