Key Highlights
- Strategy announced a proposed Initial Public Offering (IPO) for a new class of new class of preferred stock, designated as STRE Stock
- These shares will be denominated in Euros (€), with an initial value of €100 per share
- The company stated its intention to use the net proceeds from the offering for general corporate purposes, including Bitcoin acquisition
The biggest Bitcoin holding company in the world, Strategy Inc. 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 the 10.00% Series A Perpetual Stream Preferred Stock, or STRE Stock, first ever Euro-Denominated Perpetual Preferred Stock.
Strategy is offering $STRE (“Stream”), our first ever Euro-Denominated Perpetual Preferred Stock, to European and global institutional investors. $MSTR pic.twitter.com/tCectc2uA2
— Michael Saylor (@saylor) November 3, 2025
According to the official announcement, this offering will be dependent on market conditions and will be registered with U.S. Securities regulators.
Unlike the company’s other shares, this new stock will be denominated in Euros, with each share having a stated value of €100.
Strategy Plans to Use Funds for Bitcoin Acquisition and Operations
The primary objective 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 to bolster its working capital.
This comes after the company has significantly increased its Bitcoin reserves with a new acquisition of 397 Bitcoin. The company invested approximately $45.6 million in this transaction, which translates to an average purchase price of about $114,771 per Bitcoin. This latest investment has contributed to the company’s year-to-date Bitcoin yield reaching 26.1% for 2025.
After this purchase, the company’s total bitcoin holdings have grown to 641,205 BTC. The company’s cumulative investment in its vast bitcoin treasury now stands at roughly $47.49 billion. This figure makes an average acquisition cost of $74,057 per Bitcoin across its entire portfolio.
Dividend Structure Offers 10% Annual Payout with Compounding Feature
A central future of this new STRE Stock is its dividend policy. Each share is set to accumulate dividends at a fixed rate of 10% per year. These regular dividends are planned to be paid out quarterly, starting at the end of 2025, but only if officially declared by the company’s board of directors.
All declared dividends will be paid in cash. Should the company fail to pay a dividend on time, the unpaid amount will not be forgotten. Instead, it will start accumulating additional “compound dividends,” effectively adding interest on the missed payment, with the penalty rate increasing over time up to a maximum of 18% per annum.
The company also shared contingency plans for missed dividend payments. If the board fails to declare a dividend, this action automatically triggers a formal deferral notice.
Following such an event, the company is obligated to use “commercially reasonable efforts” for 60 days to sell other types of its stock to raise the cash needed to cover the missed payment, plus any compound dividends.
However, this effort is contingent on the company first satisfying any dividend obligations it has on its more senior classes of stock, known as STRF and STRC.
The official press release states, “Strategy will have the right, at its election, to redeem all, and not less than all, of the STRE Stock, at any time, for cash if the total number of shares of all STRE Stock then outstanding is less than 25% of the total number of shares of STRE Stock originally issued in this offering and in any future offering taken together.”
“In addition, Strategy will have the right to redeem all, but not less than all, of the STRE Stock if certain tax events occur. The redemption price for any STRE Stock to be redeemed will be a cash amount equal to the liquidation preference of such share to be redeemed as of the business day before the date on which Strategy sends the related redemption notice, plus accumulated and unpaid regular dividends on such share to, but excluding, the redemption date,” the company added further.
The joint book-running managers for the deal 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.
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