Strategy Inc. has announced plans to introduce a new euro-denominated Bitcoin-linked preferred stock amid a decline in its share price below a significant support level of $250. The company intends to sell 3.5 million shares of its 10.00% Series A Perpetual Stream Preferred Stock (STRE), which will primarily target qualified investors residing in the European Economic Area and the United Kingdom.
Each share is valued at €100 (approximately $114) and offers a promising 10% annual dividend, paid quarterly. Notably, any unpaid dividends will compound at a rate of 100 basis points per quarter, with a maximum cap of 18%, effectively enhancing the appeal of this offering for potential investors. The funds raised through this initiative are earmarked for acquiring Bitcoin as well as supporting the company’s general corporate operations.
The company has set specific redemption and holder protection measures. If the outstanding shares fall below 25% of the original issuance, Strategy may redeem all STRE shares. Additionally, shareholders are allowed to request a repurchase at the stated value of €100 ($114) and any accrued unpaid dividends should a fundamental change occur. The liquidation preference remains at €100 ($114), adjusting daily based on market fluctuations or the average price over the preceding ten days. It’s also important to note that dividends are only disbursed once all senior preferred dividends have been settled.
Strategy has filed liquidity plans that include the potential sale of additional preferred or common shares to fulfill its obligations. The offering is underwritten by several prominent financial entities including Barclays, Morgan Stanley, Moelis & Company, Société Générale, Toronto-Dominion Bank, Canaccord Genuity Group, and StoneX Group Inc. All transactions will occur under an effective shelf registration with the U.S. Securities and Exchange Commission.
In conjunction with this announcement, shares of Strategy Inc. have faced a decline, falling below a multi-month ascending trendline that has previously supported price rebounds since January. Currently, the stock is trading below various exponential moving averages—20, 50, 100, and 200 days—indicating a confirmed short-term downtrend. The price rejection near the $350 mark indicates sellers have been actively defending that level, and following a drop below $260, the chart now signals potential support at the $225 level. To shift current sentiments positively, bulls would need to see the stock move above the $300 threshold, which could trigger short covering and a potential reversal in trend.
