Bitcoin Updates Today: MSTR's Bitcoin Investment: Will Preferred Financing Outperform Market Fluctuations?
- Strategy Inc. (MSTR) plans to issue 3.5M euros-denominated STRE preferred shares with 10% annual dividends to fund bitcoin investments and corporate activities. - The move follows a July 2025 $2.5B STRC preferred stock raise and recent $45.6M bitcoin purchases, expanding holdings to 641,205 units at $4.75B cost. - Market reaction is mixed: shares rose post-announcement but fell in pre-market trading, with analysts noting earnings volatility tied to bitcoin price swings under ASU 2023-08. - Company emphas
Strategy Inc. (MSTR) has revealed its intention to offer 3.5 million shares of its 10.00% Series A Perpetual Stream Preferred Stock (STRE), which will be euro-denominated, as part of a new fundraising effort. These shares will accrue cumulative dividends at an annual rate of 10% based on a €100-per-share stated value, a move designed to strengthen the company’s financial position and support additional investments in
This initiative is consistent with Strategy’s broader
The STRE offering comes after a successful $2.5 billion capital raise in July 2025 through its Variable Rate Series A Perpetual Stretch Preferred Stock (STRC), which carried variable annual dividends between 9% and 10.5%, as reported in the company’s Q3 update. Strategy’s inclination toward perpetual preferred shares demonstrates its commitment to reducing shareholder dilution while ensuring access to long-term funding. “Preferred stock financing enables us to retain control as we expand our bitcoin-backed lending,” a company spokesperson commented during a recent earnings call.
Investor response has been varied. Strategy’s stock price climbed more than 4% in after-hours trading following the STRE news, but dropped 2.04% in pre-market trading amid broader market swings. Analysts point out that the company’s financial results are closely tied to bitcoin’s price movements, since its holdings are marked to market under ASU 2023-08, which increases earnings volatility.
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