Less than a week after releasing its quarterly results, Strategy (NASDAQ:MSTR) launched Stream (STRE), a perpetual preferred stock denominated in euros. Each share will be issued at €100 (US$115), with an annual dividend of 10%, paid quarterly, aimed at institutional investors in the European Economic Area.
STRE will be listed on Euro MTF Luxembourg and cleared by Euroclear and Clearstream. With high predictability, the structure is attractive to fixed income investors. Dividends are cumulative, and if not paid, will be capitalized quarterly, with an increase of 1 percentage point per period, up to a limit of 18%.
The funds raised from the issuance will be used to purchase Bitcoin (COIN:BTCUSD) and for other corporate purposes.
STRE shares have priority over STRK (NASDAQ:STRK), STRD (NASDAQ:STRD), and MSTR common shares, but are subordinated to STRF (NASDAQ:STRF) and STRC (NASDAQ:STRC) classes and the company’s debt. The shares are not redeemable except in the event of adverse tax events or if the outstanding volume falls below 25%.
Investors will be able to demand a repurchase in the event of a “fundamental change,” with the settlement value adjusted daily to reflect the greater of €100, the previous market price, or the average of the last 10 days. The offer was coordinated by Barclays, Morgan Stanley, Moelis, SG Americas, TD Securities, Canaccord Genuity, and StoneX Financial.
The company, formerly known as MicroStrategy, remains focused on converting credit and capital into Bitcoin reserves. In November, it acquired 397 BTC for approximately US$45.6 million, bringing its total to 641,205 BTC, valued at approximately US$68.5 billion at current prices.
In the third quarter, Strategy reported gross profit of US$90.7 million and net profit of US$2.8 billion, maintaining ambitious projections of US$24 billion in net profit and US$34 billion in operating profit for 2025.