Key Points
- Strategy Inc has announced a proposed initial public offering of 3.5 million shares of 10.00% Series A Perpetual Stream Preferred Stock.
- The company plans to use the proceeds for general corporate purposes, including the acquisition of Bitcoin.
Strategy Inc recently declared a proposed initial public offering (IPO) of 3.5 million shares of its 10.00% Series A Perpetual Stream Preferred Stock. The STRE Stock has a face value of €100 per share and pays cumulative dividends at a 10% annual rate.
The company aims to use the net proceeds for general corporate purposes. This includes the acquisition of Bitcoin and for working capital, as per their press release. As of November 3rd, Strategy holds 641,205 Bitcoin.
Dividend Funding and Target Market
According to the company’s prospectus, it expects to fund any dividends paid in cash on the STRE Stock primarily through additional capital raising activities. This includes at-the-market offerings of junior stock. If Strategy fails to declare a regular dividend, it will use commercially reasonable efforts over a 60-day period to sell stock to raise proceeds sufficient to cover deferred dividends.
The STRE Stock offering targets qualified investors and professional clients in the European Economic Area and United Kingdom. The offering excludes retail investors in these jurisdictions. Strategy’s expansion into euro-denominated securities coincides with the advancement of the ECB’s digital euro project to its next phase.
Company’s Capital Structure
As of October 31, 2025, the STRE Stock sits below approximately $8.25 billion in existing debt. The security also sits below Strategy’s existing STRF Stock and STRC Stock in the company’s capital structure. This means STRE holders get paid after the investors of these stocks. Strategy currently pays 10.5% monthly dividends on its STRC stock.
Regular dividends on the STRE Stock will be payable quarterly on March 31, June 30, September 30, and December 31 of each year, beginning December 31, 2025. If accumulated regular dividends are not paid on the due date, additional interest charges will pile up on the unpaid amount. The interest rate on missed payments starts at 11% and increases by one percentage point each quarter, up to a maximum rate of 18% per year.
Strategy’s recent Bitcoin acquisition brought its total holdings to 641,205 BTC. The company aims for global credit dominance through its expanding suite of Bitcoin-backed securities. Barclays Bank PLC, Morgan Stanley & Co. International plc, Moelis & Company LLC, and other financial institutions serve as joint book-running managers for the offering.
