Strategy to Issue 3.5M Euro-Denominated Preferred Shares to Fuel BTC Purchases

Michael Saylor’s BTC firm, Strategy, is planning to offer a Euro-denominated credit instrument under the symbol STRE. The firm plans for an initial public offering (IPO) of 3,500,000 shares of its 10.00% Series A Perpetual Preferred Stock.

The net proceeds from the offering will be used for general corporate purposes, including the acquisition of Bitcoin, a company statement read.

Saylor noted that the STRE would target European and global institutional investors.

The IPO STRE plans come alongside its additional Bitcoin purchase on Monday. The software-intelligent firm announced the purchase of 397 BTC between October 27 and November 2, totalling $45.6 million in cash.

Besides, Saylor sparked Bitcoin frenzy with his bold, cryptic November hint. “Orange is the color of November,” he wrote to his 4.6 million followers on X.

Here’s What the STRE Stock Would Carry

Per the official statement, STRE stock would carry €100 per share and will accumulate cumulative dividends at 10.00% annually.

Further, dividends will be paid in cash quarterly, beginning on December 31, 2025, if declared by its board of directors.

The preferred shares also include specific sections for dividend deferrals and compounding. Unpaid regular dividends will be compounded quarterly initially at a rate per annum equal to 10%, up to 18% per annum.

Strategy has retained redemption rights when outstanding STRE shares fall below 25% of the original issuance.

“The liquidation preference of the STRE Stock will initially be €100 per share,” the announcement read. Barclays, Morgan Stanley, Moelis & Company and others will act as joint book-running managers.

Strategy Shows No Signs of Slowing BTC Buys

The largest Bitcoin corporate holder with 641,205 BTC worth $67.67 billion in stash, has been steadily purchasing Bitcoin, reflecting Saylor’s unwavering commitment to BTC buys irrespective of market conditions.

The introduction of $STRE aims to assist Strategy in ongoing Bitcoin acquisitions without the need to sell common stock, attracting institutional investors looking to enter the BTC market.

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