Strategy Issues STRE Preferred Shares to Fund Bitcoin Buys
Strategy, formerly MicroStrategy, continued its systematic Bitcoin accumulation by spending about $45.6 million last week to acquire 397 BTC at an average price of $114,771. The company now holds approximately 641,205 BTC, valued around $69 billion, with an average cost basis near $74,057 per coin, reflecting a 26% year-to-date yield and an unrealized gain of $21.5 billion since 2020.
To fund ongoing weekly purchases and general operations, Strategy launched a €3.5 million issuance of euro-denominated perpetual preferred shares, ticker STRE, under its “42/42” financing plan aiming to raise $84 billion by 2027. Each share carries a €100 par value and a 10% annual dividend paid quarterly from December 2025, with unpaid dividends compounding at an initial 11% rate, rising 1% per period up to 18%.
This equity-financed approach, following four preferred-share offerings earlier in October that generated $43.4 million for 390 BTC acquisitions, underscores sustained corporate demand for Bitcoin and bolsters its long-term bullish outlook among crypto investors.
Bullish
The ongoing equity-financed Bitcoin purchases by Strategy signal strong corporate demand and add significant buying pressure to the market, which historically supports upward price momentum for BTC. In the short term, announcements of large acquisitions and preferred share issuances often trigger positive trader sentiment and a bullish reaction as investors anticipate further corporate inflows. Over the long term, Strategy’s systematic accumulation and high-yield approach reinforce market confidence in Bitcoin’s value, underpinning sustained demand and potentially limiting downside volatility.