Strategy Issues Euro STRE Preferred Stock Backed by Bitcoin
Strategy has filed to issue 3.5 million Euro STRE Preferred Stock shares at €100 each, offering a 10% annual cumulative dividend, payable quarterly from December 31, 2025. The euro-denominated STRE perpetual preferred shares rank junior to the firm’s €8.25B existing debt and sit below its STRF and STRC securities. Net proceeds will fund general corporate purposes and expand the Bitcoin treasury. Dividends will be financed through future capital raises and at-the-market offerings; unpaid dividends accrue interest at 11%, rising 1% per quarter to 18%. The offering targets professional and qualified investors in the EEA and UK, excluding retail. Barclays, Morgan Stanley and Moelis act as joint bookrunners. The Euro STRE Preferred Stock reflects growing demand for Bitcoin-backed securities in Europe and diversifies corporate funding channels.
Bullish
This issuance of Euro STRE Preferred Stock is bullish for Bitcoin. In the short term, the deal creates immediate buying pressure as Strategy allocates proceeds to expand its Bitcoin treasury, which could support upward price moves. In the long term, it signals strong institutional demand for Bitcoin-backed securities in Europe, enhancing market confidence and potentially paving the way for similar offerings. The transaction diversifies funding channels without diluting equity, underscoring the role of innovative financial instruments in bolstering Bitcoin’s adoption and price stability.