Strategy Inc. (formerly MicroStrategy) recently filed for an unprecedented initial public offering (IPO) of euro-denominated preferred shares to raise approximately EUR100 million and accelerate their bitcoin accumulation strategy. Announcing their plans today on MEXC + 2, this offering is anticipated to raise approximately EUR100 million and accelerate their bitcoin accumulation strategy. To learn more, visit MEXC | ADVFN:
Gibraltar-based Bitcoin Treasury company led by Executive Chairman Michael Saylor has announced plans to launch what they refer to as their “Series A Perpetual Stream Preferred Stock” (ticker STRE) priced at EUR100 per share and targeted towards European institutional investors. Their offering could total 3.5 million shares with registration with U.S. Securities and Exchange Commission (SEC). Investing.com
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Strategy Inc. made clear in their regulatory filing that proceeds of their IPO would be allocated towards bitcoin accumulation and working capital needs, according to Investing.com.
+1 This move highlights the firm’s ongoing dedication to using bitcoin as its primary reserve asset – signalling that this IPO is not simply another growth-cap raise, but rather serves as a funding vehicle for more crypto accumulation.
Structure, Dividend Terms and Investor Protections Each STRE share pays an annual fixed dividend rate of 10% in cash payable quarterly beginning December 31st 2025 subject to board declaration. Should the company fail to make this payment when declared, this rate rises up to 18 % per annum until finally paid out. Holders also have rights to require the repurchase of shares if fundamental changes arise and Strategy can redeem all outstanding STRE shares under certain conditions (such as tax events or low outstanding volume).
Investing.com Each share is liquidated at its respective EUR100 liquidation preference level and adjusted daily according to market price or liquidation value -whichever is greater.
Why This IPO Matters
By choosing to offer its IPO in euros and targeting institutional investors outside the U.S., Strategy has made an international capital-raising pivot and signaled their intent to increase bitcoin holdings without diluting existing common-stock holders. As recently disclosed by them, Strategy acquired another 397 BTC for approximately US$45.6 Million increasing their total holdings to over 641,000 BTC!
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Preferred shares offer investors exposure to Strategy’s ongoing bitcoin treasury strategy while providing defined dividend yield and protections, while for Strategy the raise provides convertible, non-dilutive capital (as compared to common equity) to support its treasury driven business model.
Risks and Considerations
While capital infusion will allow further bitcoin purchases, investors should remain wary of potential downside risks: Strategy remains heavily exposed to bitcoin’s market volatility and impairment risk; earlier disclosures by it reveal quarterly losses linked to its holdings. Reuters (Jan 27, 2019).
The preferred structure can also be complex; dividends and redemption rights depend on board discretion and the financial health of the company.
As Strategy grows through preferred shares and other securities offerings, its interests may diverge with those of traditional debt or yield-seeking investors if bitcoin-price declines lead to impairment charges or capital needs that affect capital needs or impairment charges.
Stay Tuned
Should market conditions support their raise, an IPO could go ahead in coming weeks with book-running conducted by major institutions including Barclays, Morgan Stanley, Moelis SG Americas TD Securities and StoneX – Financially Yahoo has more details.
Strategy plans to use proceeds from its offering quickly into additional bitcoin acquisitions while maintaining a working-capital buffer to support operations.
Strategy’s euro-denominated IPO represents an important step toward institutionalizing bitcoin-treasury model financing. By raising capital specifically for bitcoin purchases via preferred stock vehicle, Strategy highlights how corporate-treasury strategy and crypto assets have come to converge for both its firm as well as global investor bases.
