Bitcoin-Focused Firm Strategy Files for Euro IPO to Fund BTC Purchases

Michael Saylor’s Strategy plans to list 3.5 million shares of its Series A Perpetual Stream Preferred Stock (STRE) through an European initial public offering (IPO). 

According to the press release, each share carries a 10% annual cash dividend on €100 par, starting December 31, 2025, and payable quarterly on March 31, June 30, September 30, and December 31, when declared by the board. 

The dividend will increase by one percentage point each period until it reaches 18% per year.

Related: Three Years Strong: US$35.4 Billion in Verified Reserves and a 75% Yearly Surge

IPO Details

The company may redeem all STRE shares at any time, but only for cash if fewer than 25% of the original shares remain outstanding or under certain tax conditions. The redemption price will depend on market factors. Additionally, holders can also request a repurchase if specific fundamental changes occur, as outlined in the Certificate of Designations. 

As stated, the initial liquidation value is set at €100 per share, adjustable according to market conditions. Also, the firm said no prospectus will be prepared for the EEA, and retail investors in the EEA and UK are barred from participating under local securities rules.

This offering follows similar raises this year. In July, the company quadrupled its stock offering to US$2 billion (AU$3.14 billion) in STRC — a Series A variable-rate perpetual preferred share — and then used the funds to buy Bitcoin, of course.

Strategy Profits, Bitcoin Falls

Strategy did well last quarter, with a net income of US$2.8 billion (AU$4.3 billion), while also expanding its holdings to over 640K BTC. 

However, Bitcoin and the rest of the market are facing turmoil as investors turn bearish. At press time, BTC is barely holding on to $100K (AU$154K), down nearly 20% in the last 30 days, according to data from CoinMarketCap.

Related: EU Eyes Centralised Oversight of Stock and Crypto Exchanges to Rival US Markets