Strategy has announced its first-ever euro‑denominated preferred stock offering and is issuing 3.5 million shares to fund new Bitcoin acquisitions.
Summary
- Strategy will offer 3.5 million euro-denominated preferred shares.
- Proceeds will be used to acquire Bitcoin and support general corporate operations.
- Strategy now holds 641,205 BTC after buying 397 BTC for $45.6 million ahead of the offering.
Strategy will conduct an initial public offering of 3.5 million shares of its 10% Series A Perpetual Stream Preferred Stock, including plans to list the shares under the ticker STRE, a Nov. 3 announcement from the company said.
Unlike its common stock, MSTR, which is publicly traded on Nasdaq and carries voting rights, this is a distinct class of preferred stock that does not offer voting rights and sits above common stock in the company’s capital structure. In the event of liquidation, preferred shareholders would be paid before common shareholders.
For Strategy, it is the first time it has issued a euro‑denominated financial instrument as it looks to target European institutional investors. STRE will offer a 10% annual dividend, payable in cash every quarter starting December 31, 2025, if declared by the board.
“Strategy intends to use the net proceeds from the offering for general corporate purposes, including the acquisition of bitcoin and for working capital,” the announcement said.
The Michael Saylor co-founded company has been aggressively accumulating Bitcoin and has been the largest corporate holder of the asset since it began its treasury strategy in 2020.
The latest acquisition preceded the IPO announcement, with the company disclosing on Nov. 3 that it acquired 397 BTC for approximately $45.6 million. At press time, Strategy holds 641,205 BTC, with an estimated value of $68.39 billion according to data from Bitcoin Treasuries by Bitbo.
Despite its significant lead in the corporate treasury market, Strategy shares have continued to slide over the past 6 months, falling from above $450 in July to $264.67 by Nov. 3. The latest announcements have done little to reverse the trend, with the stock ending the day down 1.8% and slipping further in after-hours trade.
Last month, S&P Global Ratings assigned the company a B minus credit rating, citing its heavy concentration in Bitcoin, weak liquidity position, and rising preferred stock dividend obligations. Shareholders also seem to be sharing the same concerns about dilution, as Strategy continues to raise funds through stock sales to fuel its Bitcoin accumulation strategy.
At the same time, Bitcoin (BTC) has been under pressure over the past weeks, slipping below the $110,000 mark as price action turned increasingly cautious. Struggles to regain upward momentum have persisted, with traders remaining sensitive to macro developments in the United States.
