Strategy Doubles Down on Bitcoin with Euro-Denominated STRE Preferred Stock

• Strategy Inc has unveiled a euro-denominated preferred stock, STRE, offering a fixed 10% annual dividend and compounding arrears up to 18%.
• Proceeds will fund further Bitcoin accumulation, including a recent 397 BTC purchase worth $45.6 million.
• Listed on Luxembourg’s Euro MTF, STRE targets European professional investors seeking yield diversification and indirect crypto exposure without direct custody.

Michael Saylor-led Strategy Inc. has unveiled a calculated, institution-grade manoeuvre to augment its Bitcoin war chest: a euro-denominated perpetual preferred share, the 10% Series A Perpetual Stream Preferred Stock (STRE), sized at 3.5 million shares with a €100 stated amount.

The offering, aimed squarely at professional investors in the EEA and U.K., threads a steady-income narrative through the volatility of digital-asset accumulation.

The structure is patently hybrid. STRE promises a fixed 10.00% annual dividend, payable quarterly beginning December 31, 2025. Crucially, dividends are cumulative; any missed coupon will not evaporate but instead compound, starting at 11% per annum and ratcheting up by 1 percentage point each quarter of continued non-payment to a ceiling of 18% annually. That escalation is designed as an income-protection mechanism, intended to deter prolonged deferrals and to bolster yield for holders should the issuer defer payouts.

Strategy says net proceeds will be deployed, in part, to buy Bitcoin, a continuity of its long-standing treasury posture that treats the corporate balance sheet as a proxy for direct crypto ownership. The timing is synchronised: the company disclosed an additional purchase of 397 BTC in the week ending November 2, at an average price near $114,771 per coin, underscoring that fresh capital will be translated into spot accumulation rather than derivative exposure.

Several institutional features signal the offer’s professional tilt. STRE is expected to list on the Luxembourg Stock Exchange’s Euro MTF, a venue geared toward wholesale trading, and the issuance is handled by a syndicate of established banks, including Barclays, Morgan Stanley and Moelis. Redemption, repurchase and liquidation-preference clauses are explicit: shareholders can force repurchase on certain “fundamental change” events, while the liquidation preference adjusts to market realities, set at the greater of the €100 stated amount, the most recent sale price, or a ten-day average closing price.

For European institutions, euro denomination delivers currency alignment and a route to Bitcoin exposure without custody headaches. Yet the design carries taut trade-offs. Investors are effectively buying a corporate claim whose upside is tethered to Strategy’s balance-sheet decisions and the gyrations of Bitcoin; they do not own Bitcoin directly. They shoulder issuer credit risk, foreign-exchange considerations (dividends paid in euros while corporate reporting largely remains U.S.-centric), and potential liquidity constraints arising from a professional market listing.

Analysts frame the move as emblematic of a broader institutionalisation of crypto exposure: financial engineers packaging access through familiar legal wrappers, equity, preferred stock, and yield structures, to navigate regulatory frictions and custody frictions. STRE’s compounded arrears provision and dynamic liquidation clause are bespoke accoutrements that speak to lessons learned from earlier corporate crypto financings: investors demand both yield and explicit recovery mechanics amid an asset class prone to seismic repricings.

Whether STRE becomes a template for other corporates depends on appetite. In an environment of compressed real yields and persistent institutional curiosity about Bitcoin, instruments that fuse fixed income ergonomics with corporate crypto strategy are likely to find a receptive audience, provided issuers remain transparent about the balance-sheet choreography underpinning their digital-asset playbook.

Editorial Note: This news article has been written with assistance from AI. Edited & fact-checked by the Editorial Team.

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