In a significant move to expand its operations and secure additional funding, Michael Saylor and his team at Strategy (MSTR) have announced their entry into the European market. The company aims to enhance its capabilities in acquiring more bitcoin as it positions itself as the largest publicly traded holder of the cryptocurrency.
The firm has priced its initial public offering of 7.75 million shares of 10% Series A Perpetual Stream Preferred Stock (STRE) at €80 per share. With the anticipated closing date set for November 13, the sale is expected to generate approximately €620 million ($715 million) in gross proceeds. These funds are primarily earmarked for the acquisition of additional bitcoin holdings.
The STRE Stock promises a 10% annual dividend based on its €100 stated value, payable quarterly starting December 31, provided the board declares the dividends. Unpaid dividends will accrue interest at an initial rate of 11%, increasing by 1% each quarter until reaching a maximum of 18% until they are paid.
Currently, Strategy holds 641,205 bitcoin, which is valued at around $64.1 billion based on the current price of about $100,000 per BTC. However, recent market fluctuations have affected bitcoin’s price, which has seen declines, impacting investor sentiment. Notably, the premium at which investors are pricing Strategy’s common stock relative to the value of its bitcoin holdings has been shrinking rapidly. This trend poses challenges for the company in raising funds through common stock sales.
As a result, the issuance of preferred stock appears to be a strategic option for Strategy to continue its bitcoin accumulation without facing the pressures associated with its common stock value. In the pre-market, MSTR shares have declined by 5.3%, marking a total decrease of approximately 50% since reaching its peak for 2025 less than four months ago. The ongoing volatility in the cryptocurrency market adds to the uncertainty surrounding the company’s stock performance and its ambitious plans for growth.
