- Strategy launches its first European funding drive through new STRE preferred stock issuance.
- The company plans to use €620 million from STRE sales to buy more Bitcoin.
- Falling stock value pushes Strategy to rely on preferred shares for Bitcoin expansion.
Strategy (MSTR), the largest publicly traded company holding Bitcoin, has launched its first European funding initiative. The company priced its new 10% Series A Perpetual Stream Preferred Stock, or STRE, at €80 per share. This sale, expected to close on November 13, will raise about €620 million ($715 million) in gross proceeds. Strategy plans to use most of the funds to acquire additional Bitcoin.
The preferred stock carries a 10% annual dividend on its €100 stated value, paid quarterly. Unpaid dividends will accrue interest starting at 11%, rising by 1% each quarter until paid.
Shift Toward Preferred Share Funding
The company’s move follows a sharp decline in its common stock performance. Strategy shares have fallen nearly 50% from their 2025 peak, dropping 5.3% in premarket trading to $225 on Friday. As the premium between Strategy’s stock price and the value of its Bitcoin holdings narrows, raising funds through common stock sales has become less effective.
This shift makes preferred share issuances a key funding option. Strategy has launched several preferred stock series this year to maintain its Bitcoin acquisition strategy despite market headwinds.
Listing and Market Strategy
Unlike the company’s earlier preferred shares, which became available to retail investors through U.S. brokerages, STRE will be listed on Luxembourg’s Euro MTF exchange. The listing broadens Strategy’s investor base by targeting European markets. The STRE series is denominated in euros and designed to deliver regular dividend payments.
Investors in STRE will have a higher priority claim on Strategy’s assets than common shareholders, though they rank below other preferred and debt holders. The offering highlights Strategy’s intent to diversify funding sources while expanding its international presence. Additionally, Gemini launched tokenized MSTR shares in the EU to give users blockchain access to U.S. equities using real securities.
Bitcoin Holdings and Market Conditions
As of Monday, Strategy held 641,205 Bitcoin valued at roughly $64.6 billion based on Bitcoin’s price of about $100,000. The company’s market capitalization stood near $66 billion, only slightly above the value of its Bitcoin reserves. A year ago, Strategy traded at almost three times its Bitcoin value. The recent decline in its stock premium reflects tighter market conditions for Bitcoin-related firms.
Earlier this week, Strategy added $45.6 million in Bitcoin purchases after raising $69.5 million through preferred and common stock sales. Moreover, Strategy added 196 Bitcoin last week, bringing its total holdings to 640,031 BTC worth around $71.8 billion. Despite the volatility, the company continues to favor accumulating Bitcoin rather than selling its holdings. Strategy’s latest offering marks its first major capital raise in Europe, signaling continued confidence in its long-term Bitcoin strategy.
