Strategy’s (NASDAQ:MSTR) Stretch preferred stock grew from zero to $5 billion in seven months, faster than Apple’s (NASDAQ:AAPL) iPhone and Google (NASDAQ:GOOGL) Ads, as the product pays an 11.5% yield tax-deferred with 80% retail participation.

The Seven-Month Sprint

Strategy launched Stretch at the end of July 2025. From that point to mid-March 2026, the product grew to $5 billion. 

Apple’s iPhone took about a year to reach $5 billion in cumulative revenue. Google Ads took about four years.

“From a pure product perspective, you could argue that Stretch is the fastest growing product in the history of the world,” said Fong Lee, CEO of Strategy.

Compared to ETFs, the gold ETF launched in the early 2000s took four to five years to reach $5 billion in assets under management. 

Meanwhile, the Ethereum (CRYPTO: ETH) ETF took closer to a year. Only BlackRock’s IBIT (NASDAQ:IBIT), also backed by Bitcoin, grew faster at two months.

How It Works

Stretch is a perpetual preferred stock that pays an 11.5% annual yield in monthly distributions. 

The payments qualify as return of capital, meaning investors don’t pay taxes unless they sell the underlying shares.

If you put $1,000 into Stretch on January 1, you get paid 11.5% for the entire year. That’s $115 over the course of the year, or roughly $9.58 every month. 

The yield resets monthly and has ranged from 9% to 11.5% since launch.

Strategy issues common shares into the market to fund the dividend. As long as the company issues shares above net asset value, the arrangement benefits common shareholders, Bitcoin, and Stretch holders.

The Retail Surge

MSTR has about 40% retail investors and 60% institutional investors. Stretch flipped that ratio with 80% retail participation.

“We went into this with the hypothesis that this is what the general audience wants,” Lee said. “The people at the backyard barbecue, my parents, your parents. And it’s proven out,” he added.

The product targets investors who want Bitcoin exposure without the volatility. Strategy holds more than 760,000 Bitcoin worth $55 billion on its balance sheet, providing collateral for Stretch.

The Bare Market Test

Strategy introduced Stretch in late July 2025 when Bitcoin (CRYPTO: BTC) traded near $120,000.  

Bitcoin then crashed to $70,000, getting cut nearly in half. Stretch went from $90 at launch to $100 in October, dropped to $93 during crashes, and now sits at $100.

“We’ve proven out this case that the company, our large Bitcoin base, the transparency of the company and its leadership team is making Stretch work the way we expected it to,” Lee said.

The Yield Gap Thesis

Lee argues Stretch addresses a yield gap in America. The richest 10% of individuals hold $5 trillion in bank accounts earning 2-3% yield. 

The bottom half holds $5 trillion earning zero to 0.5% yield purely because their accounts are smaller.

Additionally, Lee said Stretch democratizes yield and gives investors the same 11.5% return whether they invest $100, $1,000, or $10,000.

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