Main highlights
- Strategy has announced a proposed initial public offering (IPO) of a new class of preferred stock to be designated as STRE Stock.
- These shares will be denominated in euros (€), initial price 100 euros per share
- The Company has expressed its intention to use the net proceeds from this offering for general corporate purposes, including the acquisition of Bitcoin.
Strategy, the world’s largest Bitcoin holding company, has announced its intention to launch an initial public offering (IPO). The Company plans to issue 3.5 million shares of a new type of stock called 10.00% Series A Perpetual Stream Preferred Stock (STRE Stock). The first ever euro-denominated perpetual preferred stock.
Strategy offers $STRE (“Stream”), the company’s first euro-denominated perpetual preferred stock, to institutional investors in Europe and around the world. $MSTR pic.twitter.com/tCectc2uA2
— Michael Saylor (@saylor) November 3, 2025
The offering will be subject to market conditions and will be registered with U.S. securities regulators, according to an official statement.
Unlike the company’s other shares, the new shares will be denominated in euros, with each share having an official price of 100 euros.
Strategic plan for using funds to acquire and operate Bitcoin
The primary purpose of this stock sale is to raise capital for Strategy’s general corporate needs. The company has specifically stated that it intends to use the net proceeds to acquire Bitcoin and strengthen its working capital.
This was done after the company acquired 397 new Bitcoins and significantly increased its Bitcoin reserves. The company invested approximately $45.6 million in the transaction. This translates to an average purchase price of approximately $114,771 per Bitcoin. This latest investment helped push the company’s year-to-date Bitcoin yield to 26.1% in 2025.
After this acquisition, the company’s total Bitcoin holdings increased to 641,205 BTC. The company’s cumulative investment in Bitcoin assets currently amounts to approximately $47.49 billion. This number gives an average acquisition cost of $74,057 per Bitcoin for the entire portfolio.
10% annual dividend structure with compound interest feature
Central to the future of this new STRE stock is its dividend policy. Each stock is set to accumulate dividends at a fixed rate of 10% per year. These regular dividends are expected to be paid quarterly from the end of 2025, subject to formal declaration by the company’s board of directors.
All declared dividends are paid in cash. Even if the company does not pay the dividend on time, the unpaid amount will not be forgotten. Instead, you start accumulating additional “compound dividends”, effectively adding interest if you miss a payment, and the penalty rate increases over time up to 18% per year.
The company also shared its contingency plan for non-payment of dividends. If the board does not declare a dividend, this action automatically triggers a formal deferment notice.
If this were to occur, the company would be obligated to use “commercially reasonable efforts” within 60 days to sell other classes of stock to raise the cash needed to cover the outstanding balance and compounded dividends.
However, this initiative is conditional on the company first fulfilling its dividend obligations on the higher class share classes known as STRF and STRC.
The official press release states, “Strategy has the right, upon its election, to redeem at least all of its STRE Shares for cash at any time, if the total number of STRE Shares then outstanding is less than 25% of the total number of STRE Shares originally outstanding, including this offering and any future offerings.”
“Furthermore, Strategy has the right to redeem (at least all) STRE Shares in full upon the occurrence of certain tax events. The redemption price for STRE Shares to be redeemed will be an amount of cash equal to the liquidation preference for such Shares to be redeemed as of the business day prior to the date on which Strategy transmits the relevant redemption notice, plus any accumulated and unpaid ordinary dividends on such Shares up to the date of redemption,” the company further added.
Joint bookkeepers for the transaction include Barclays Bank PLC, Morgan Stanley & Co. International plc, Moelis & Company LLC, SG Americas Securities, LLC, TD Securities (USA) LLC, Canaccord Genuity Limited, and StoneX Financial Inc.
