Strategy Raises $715M via Euro-Denominated Preferred Shares for BTC

Strategy Raises $715 Million in Europe Through New Preferred Stock Offering Backed by Bitcoin Holdings

  • Strategy raised $715 million through its new preferred stock offering in Europe.
  • The preferred shares, called STRE, are denominated in euros and pay fixed dividends.
  • STRE shares will be listed on the Euro MTF Luxembourg exchange for international investors.
  • The offering price was €80 ($93) per share, lower than the €100 ($116) par value.
  • Proceeds will support daily expenses and additional Bitcoin purchases; the company holds over 641,000 Bitcoin.

Strategy, a Bitcoin-holding company based in Tysons Corner, Virginia, announced it raised approximately $715 million through a new preferred stock offering targeting European investors. The offering, called the Perpetual Stream Preferred Stock (STRE), was introduced earlier this week and denominated in euros.

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The STRE shares pay fixed regular dividends and will be listed on the Euro MTF Luxembourg exchange, which supports international issuers. This marks Strategy‘s first issuance aimed at foreign markets. The offering price was set at €80 (around $93) per share, although the par value is €100 ($116). Dividends are paid in cash and calculated based on the higher par value.

Unlike Strategy‘s previous preferred shares, which became accessible to U.S. retail investors via broker Robinhood, STRE targets European institutional and international investors. The company plans to use the proceeds for operational expenses and acquiring more Bitcoin. As of Monday, Strategy holds about 641,205 Bitcoin, valued near $64.6 billion based on current prices.

Recently, Strategy‘s shares dropped 3% to $230, declining 14% over the past week amid Bitcoin’s price fluctuations near $100,000. The company’s market capitalization stands at about $66 billion, slightly above the total Bitcoin holdings’ value. Previously, share prices traded at nearly three times the Bitcoin asset value.

Co-founder and executive chairman Michael Saylor described STRE as “the first digital credit instrument we created for the European market,” noting that its fixed 10% dividend rate mirrors that of its earlier preferred stock STRF. STRE ranks below STRF and the company’s debt in claim priority but above common shares.

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In recent months, Strategy raised more capital from preferred stock offerings than it spent on Bitcoin purchases. Earlier this week, it bought $45.6 million worth of Bitcoin after raising $69.5 million through a mix of preferred and common stock. The use of preferred shares has increased as a funding method, given the relative decline in the company’s stock price compared to its Bitcoin assets.

Despite market trends where some firms sell Bitcoin to reduce debt, Saylor has stated that holders should avoid selling Bitcoin, opting to borrow against it instead. Prediction market data from Myriad Markets shows traders assigned a 95% chance that Strategy will not sell any Bitcoin before the end of this year.

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