Strategy, the world’s largest digital asset treasury company, has made the first move to offer 3.5 million shares of its euro-denominated perpetual preferred stock, STRE, to fund future bitcoin acquisitions and other corporate activities. On Monday, the company confirmed the plan in a press release, stating that the offering is subject to market conditions.
The filing states that the net proceeds will be used for general corporate purposes, which include additional bitcoin purchases and the maintenance of working capital reserves. The stock will have a 10% annual cumulative dividend on a stated amount of €100, paid quarterly in cash starting December 31, 2025, after the board of directors has given its approval, but only if the dividend is declared.
Dividends on STRE stock that are not paid will be compounded quarterly. Initially, they will be at 11%, and by increasing 100 basis points per period, they will reach a maximum rate of 18%, according to the company’s statement. The Strategy stated that these dividend characteristics were intended to attract long-term institutional investors who are looking for yield exposure linked to digital assets.
The company’s decision to finance bitcoin purchases through the issuance of equity and debt has been the main factor behind the so-called digital asset treasury (DAT) model, as referred to by analysts. This model enables public companies to accumulate and hold bitcoin as a reserve asset by using financial instruments, such as perpetual preferred stock.
Strategy in its announcement also revealed that it had purchased an additional 397 BTC for roughly $45.6 million, at an average price of $114,771 per Bitcoin; thus, total holdings are now 641,205 BTC. The pace of accumulation was slower in the third quarter, but the Mizuho, TD Cowen, and Benchmark analysts writing in their reports state that the slowdown is of a cyclical nature and not structural.
On Monday, the company’s MSTR stock went down 1.8% and closed at $264.67. So far, during the last month, the shares have been decreasing by 24.73%, and the year-to-date loss is 11.78%. At the same time, Bitcoin was 2.57% lower and trading at $106,865, as per The Chainbull’s price dashboard, which is in line with the overall weakness in the digital asset market.
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