Main highlights:
- Strategy Inc has priced the STRE preferred stock IPO at €80 per share.
- The proceeds will be used to buy more Bitcoin.
- STRE offers a 10% annual dividend, which compounds up to 18% if delayed.
Strategy Inc. (formerly MicroStrategy) has announced an initial public offering (IPO) of 7,750,000 shares of 10.00% Series A Perpetual Stream Preferred Stock (STRE Stock) priced at €80 per share. Settlement here is scheduled for November 13, 2025. The company expects to raise gross proceeds of approximately 620 million euros (approximately $715.1 million) from this sale. After deducting underwriting fees and expenses, Strategy estimates net proceeds to be approximately EUR 608.8 million (approximately $702.2 million) based on the exchange rate of EUR 1.1534 as of November 6, 2025.
Strategy has announced the pricing of its Stream Perpetual Preferred Stock ($STRE) offering, increasing the transaction value from €350 million to €620 million. $MSTR
— Michael Saylor (@saylor) November 7, 2025
The company plans to use the funds for general corporate purposes, including purchasing Bitcoin and supporting working capital needs. This IPO will help them raise more funds without selling their Bitcoins and will support their mission to accumulate more BTC.
STRE shares pay a cumulative dividend of 10% per annum on the official price of 100 euros per share. This will be paid quarterly starting December 31, 2025, subject to board approval. If a dividend is not paid, the dividend will accumulate and compound at an annual rate of 11%, increasing by 1% each quarter until all outstanding dividends are paid, up to a maximum rate of 18%.
The announcement came at the moment Bitcoin fell below $100,000. The move shows confidence despite a cooling market.
What happens if the dividend is not paid?
If Strategy chooses not to declare a dividend by the scheduled record date, it must formally notify investors that the payment will be deferred. The company then has up to 60 days to attempt to raise funds by selling additional shares to pay the delayed dividends and any additional interest that has accumulated.
However, the payment of these dividends depends on the higher dividend priority of other classes of preferred stock.
Strategy also has the right to redeem or repurchase all STRE shares from investors in two main circumstances:
- if less than 25% of the original shares are still outstanding; or
- When certain tax-related events occur that affect the STRE structure.
In either case, the investor will receive the full liquidation amount plus any accumulated and unpaid dividends.
The STRE preference shares also have a liquidation preference of €100 per share. This amount is not fixed and adjusts daily to the higher of:
- €100 (listed price),
- Latest sales price, or
- 10-day moving average of selling prices.
This means investors are protected and always receive the highest value if the company redeems or liquidates its shares.
In the event of a fundamental change, such as a reorganization, merger or delisting, holders have the right to require Strategy Inc. to repurchase their STRE shares at the stated price plus any unpaid dividends. This gives investors a clear exit strategy and reduces downside risk.
The offer is led by Barclays, Morgan Stanley, Morris, SG Americas, TD Securities, Canaccord Genuity and StoneX Financial, all of which are acting as joint bookkeepers, according to a press release. The sale is being conducted under a valid SEC shelf registration, meaning Strategic already has approval to issue various types of securities without having to apply each time.
Potential impact on STRE stock price
This move could support STRE’s stock price. This is because a fixed 10% dividend could support STRE’s stock price. The stock is attractive to income-oriented investors because built-in protections such as liquidation preference and the right to request repurchase in certain events reduce perceived risk. Additionally, raising capital through preferred stock instead of selling Bitcoin signals long-term confidence in the company’s accumulation strategy, which investors typically view as positive. However, the issuance of new shares can be dilutive, so the ultimate impact on the shock price depends on how strongly the market reacts to the issuance of new shares.
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