What happened?
Michael Saylor’s firm Strategy announced an offering of 3,500,000 Euro‑denominated 10.00% Series A Perpetual Preferred shares under the ticker STRE. Each share carries a €100 liquidation preference, pays cumulative 10% annual dividends payable quarterly, and includes provisions for dividend deferral and compounding. The company says net proceeds will go to general corporate purposes, including buying more Bitcoin.
Who does this affect?
European and global institutional investors are the main target for STRE, giving them a euro‑denominated way to get exposure to Strategy’s Bitcoin play and a steady yield. Existing Strategy common shareholders may benefit from less dilution since the firm plans to raise funds without selling common stock, though preferred shares sit differently in the capital structure. Banks, underwriters and the Bitcoin market are also affected because proceeds are likely to fund more BTC purchases and fees flow to the deal managers.
Why does this matter?
This matters because it creates a new funding channel that could channel institutional euro capital into Strategy’s ongoing Bitcoin accumulation, potentially increasing demand and supporting BTC prices. By using perpetual preferred shares instead of issuing common stock, Strategy can keep buying Bitcoin without diluting common equity, which may signal continued corporate commitment to BTC. At the same time, the fixed dividend burden and more complex capital structure add financial obligations and risk if Bitcoin weakens or dividends are deferred and compound.