Strategy Issues €609M Perpetual Stock for Bitcoin Expansion

Strategy, a specialized crypto treasury company, is maintaining its aggressive Bitcoin acquisition strategy by pricing a new perpetual preferred stock offering designed specifically to fund additional cryptocurrency purchases. The company announced on Friday that its Series A Perpetual Stream Preferred Stock (STRE) will debut at 80 euros per share, raising an estimated 608.8 million euros ($92.50 per share equivalent) in net proceeds. This substantial capital raise represents a significant commitment to expanding the company’s Bitcoin holdings despite the volatile cryptocurrency market conditions.

The company explicitly stated that the funds generated from this offering will be used to purchase more Bitcoin (BTC) and for general corporate purposes, marking a clear continuation of its core business model. The STRE shares are scheduled to settle on November 13, providing the company with immediate capital to execute its Bitcoin acquisition strategy. This move highlights how traditional finance instruments like corporate debt securities and equities are being increasingly utilized to fund cryptocurrency investments, bridging the gap between conventional capital markets and the digital asset space.

The newly issued STRE shares occupy a specific position within Strategy’s complex capital structure, sitting above some existing securities while remaining subordinate to others. According to the company’s announcement, the STRE perpetual preferred stock ranks senior to Strategy’s Perpetual Strike (STRK), Perpetual Stride (STRD) and common stock in the payment hierarchy. This seniority provides STRE holders with priority in dividend distributions and potential liquidation scenarios over these junior securities.

However, the STRE shares maintain a subordinate position to Strategy’s Perpetual Strife (STRF), Variable Rate Perpetual Stretch (STRC) shares, and all outstanding debt obligations. This carefully structured hierarchy reflects the company’s approach to balancing different investor preferences while optimizing its cost of capital. The perpetual nature of these securities means they have no maturity date, providing Strategy with permanent capital to support its long-term Bitcoin acquisition strategy without the pressure of near-term repayment obligations.

Strategy’s decision to proceed with this substantial euro-denominated offering signals strong corporate confidence in Bitcoin as a treasury asset, even amid recent market turbulence. By choosing to raise capital specifically for Bitcoin purchases through traditional financial instruments, the company is demonstrating its belief in the long-term value proposition of cryptocurrency holdings. The 608.8 million euro target indicates significant scale in the company’s acquisition ambitions, potentially positioning it as a major institutional holder in the Bitcoin ecosystem.

The euro-denominated nature of the STRE offering provides insight into the company’s geographic funding strategy and currency risk management approach. By tapping European capital markets, Strategy diversifies its investor base and funding sources while potentially benefiting from different regional investor appetites for cryptocurrency exposure. This perpetual preferred stock structure allows the company to lock in long-term funding for its Bitcoin strategy without diluting common shareholders, maintaining the flexibility to pursue aggressive cryptocurrency accumulation while managing its overall capital structure efficiently.