Strategy raises €620 million in offering of Stream Preferred

Billionaire Michael Saylor's Strategy Inc. announced on Friday that it has priced its initial public offering (IPO) of 10% Series A Perpetual Stream Preferred Stock (STRE), raising gross proceeds of €620 million ($715 million).

The offering was initially priced at €350 million, but was increased due to strong investor demand and is scheduled to close on November 13, 2025, subject to customary approvals.

€620 million raised for expansion and Bitcoin purchases

The offering consists of 7.75 million shares priced at €80 per share, generating net proceeds of approximately €608.8 million ($702.2 million) after fees and expenses. Strategy stated that the funds will be used for general corporate purposes, including acquiring more Bitcoin and supporting its ongoing operational and growth initiatives.

This announcement underscores Strategy's continued belief in Bitcoin as a reserve asset and part of its comprehensive treasury management strategy. The company has been one of the largest corporate holders of Bitcoin and continues to build investment products around digital assets, positioning itself as a hybrid between a technology-driven financial firm and a Bitcoin-focused enterprise.

10% Dividend with Quarterly Payments

Each share of STRE receives a 10% annual dividend, equivalent to €10 per €100 of stated value, which will be paid quarterly in cash on March 31, June 30, September 30, and December 31, beginning December 31, 2025.

If the strategy misses a payment, interest on the outstanding amount is compounded quarterly, increasing by 1% each period, up to a maximum of 18%.

This structure provides investors with a stable, high-yield return, while also offering flexibility to the strategy if cash flow timing issues arise. If less than 25% of the original issue amount remains outstanding or under specific tax-related circumstances, the company can redeem all shares at any time.

Investor Protection and Redemption Rights

In the event of a "fundamental change"—such as a merger, reorganization, or ownership change—STRE shareholders can request the strategy to buy back their shares for €100 per share, plus any unpaid dividends. A liquidation preference of €100 per share also applies, meaning that in the unlikely event of liquidation, investors will be refunded this amount before common shareholders.

The liquidation price is adjusted daily based on recent market prices, ensuring that the preferred stock reflects fair value when actively traded.

Led by Top Global Banks

The offering is being managed by a group of leading financial institutions, including Barclays, Morgan Stanley, Moelis & Co., Societe Generale, TD Securities, Canaccord Genuity, and StoneX Financial.