Bitcoin Firm Raises €620M in Stock Offering for Growth

Strategy Inc., a prominent advocate for Bitcoin as a corporate treasury asset, recently announced the successful pricing of its upsized initial public offering of 10% Series A Perpetual Stream Preferred Stock (STRE). This strategic move has raised substantial gross proceeds of €620 million, significantly exceeding the initial target of €350 million due to robust investor interest. The capital infusion is earmarked to further bolster the company’s Bitcoin holdings and support ongoing corporate growth and operational initiatives.

The offering, which is scheduled to settle on November 13, 2025, reflects Strategy’s continued confidence in its dual identity as a technology-driven financial firm and a leading corporate holder of Bitcoin.

The Upsized Offering: Responding to Strong Demand

Initially projected to raise €350 million, the offering was significantly upsized to €620 million following exceptional demand from investors. This substantial increase underscores a notable appetite among institutional and professional investors for instruments that blend traditional yield with exposure to digital assets. The offering consists of 7.75 million shares of preferred stock, priced at €80 each. After accounting for underwriting fees and other expenses, Strategy anticipates receiving net proceeds of approximately €608.8 million.

Funding Bitcoin Acquisitions and Corporate Growth

Strategy has clearly outlined its intent to deploy the net proceeds from this offering primarily for general corporate purposes, including the acquisition of additional Bitcoin. This aligns with the company’s long-standing treasury management strategy, pioneered by executive chairman Michael Saylor, which views Bitcoin as a primary reserve asset. The funds will also support Strategy’s ongoing operational needs and various growth initiatives, positioning the company to further expand its presence at the intersection of traditional finance and the evolving digital asset economy.

Understanding the 10% Series A Perpetual Stream Preferred Stock (STRE)

The newly issued STRE preferred stock is designed to attract investors seeking a stable, high-yield return. Each share carries a 10% annual dividend, calculated on a stated value of €100 per share. These cumulative dividends are payable quarterly in cash, with the first payment scheduled for December 31, 2025. A key feature of the STRE stock is its provision for missed dividend payments: if Strategy fails to declare a regular dividend, additional compounded dividends will accumulate. These will start at an initial annual rate of 11%, increasing by 100 basis points each subsequent dividend period, up to a maximum of 18% per annum, until all accumulated dividends are paid.

Investor Protections and Redemption Mechanisms

To safeguard investor interests, the STRE preferred stock incorporates several protective clauses. In the event of a “fundamental change”—such as a merger, significant restructuring, or a major shift in ownership—holders of STRE stock have the right to request that Strategy repurchase their shares at €100 each, plus any accumulated and unpaid dividends. Furthermore, each share has a liquidation preference of €100, meaning preferred shareholders would receive this amount before common shareholders in the unlikely event of the company’s wind-down. The liquidation value is also subject to daily adjustments based on recent market prices and trading activity over specified periods, aiming to ensure fair value.

Strategy also retains certain redemption rights, allowing the company to redeem all, but not less than all, of the STRE stock under specific conditions. These include situations where the outstanding shares fall below 25% of the original issuance or upon the occurrence of particular tax-related events.

Led by Top Global Banks

The successful offering was managed by a consortium of leading financial institutions, including Barclays Bank PLC, Morgan Stanley & Co. International plc, Moelis & Company LLC, SG Americas Securities, LLC, TD Securities (USA) LLC, Canaccord Genuity LLC, and StoneX Financial Inc. The involvement of these prominent global banks highlights significant institutional confidence in Strategy’s unique business model and its growing influence in bridging traditional capital markets with the digital asset ecosystem.

Conclusion

Strategy’s upsized €620 million preferred stock offering represents a calculated and significant step in its ongoing mission to integrate Bitcoin into its corporate treasury and fuel its growth trajectory. By providing a compelling yield instrument through the STRE preferred stock, the company continues to attract a diverse investor base while reinforcing its strategic commitment to Bitcoin. This move further solidifies Strategy’s position as an innovator, continuously exploring novel financing mechanisms to expand its digital asset holdings and enhance shareholder value within the evolving financial landscape.