Strategy (MSTR) has encountered significant challenges with the launch of its first non-U.S. perpetual preferred product, Stream (STRE), which debuted in November with high hopes of capturing demand across the European Economic Area (EEA). The preferred shares were introduced at a stated value of EUR100 (approximately $115) per share, offering a 10% annual dividend and occupying a position above common equity in the company’s capital structure. STRE was conceived as a European counterpart to the company’s existing high-yield money-market-style preferred share, Stretch (STRC).
Despite these promising attributes, the issuance has not unfolded as intended, with Strategy ultimately raising only $715 million and pricing the shares at a significant 20% discount to EUR80 per share due to existing market conditions and demand fluctuations. Since the issuance, STRE has faced considerable struggles in gaining traction within the marketplace.
Khing Oei, CEO of Treasury, a Bitcoin-focused treasury firm based in the Netherlands, highlighted several structural barriers impeding STRE’s success, pointing out that the product’s accessibility is limited: it is listed on Luxembourg’s Euro MTF, a trading venue that lacks user-friendly distribution channels. Major brokerage platforms, including Interactive Brokers, have not made STRE available, which limits its reach to retail investors.
Moreover, the absence of transparent historical pricing and reliable market data has further complicated the situation. Investors find it challenging to evaluate liquidity and performance due to limited visibility on trading platforms. Current data from TradingView indicates a market capitalization for STRE of $39 billion but shows dismally low trading volumes of just 1,300 shares, signaling a lack of active investor interest.
Looking forward, the future of STRE is uncertain. Oei proposes that the product could benefit from being relisted on alternative trading venues, particularly in the Netherlands. He notes that the Dutch financial and trading infrastructure could provide superior distribution capabilities, deeper market-making functions, tighter bid-ask spreads, and more extensive access for retail investors. Such an environment could enhance the potential for broader adoption of STRE.
As the situation unfolds, the question remains whether Michael Saylor and his team at Strategy will reinvest efforts in the European market or continue focusing predominantly on their established U.S. operations, where they currently have four perpetual preferred share products. The choices made in the coming months will heavily influence the future trajectory of STRE and its acceptance in the capital markets.
