Michael Saylor's Strategy launches sale of euro-based stock

Michael Saylor’s Strategy, recognized as the largest Bitcoin treasury company globally, has recently announced the pricing of its euro-denominated perpetual preferred stock. This move marks a significant step in the company's efforts to secure additional funding for Bitcoin acquisitions.

Michael Saylor introduces euro-denominated stock sale to fund Bitcoin purchases

The company has revealed an initial public offering (IPO) of 7.75 million shares of its 10% Series A Perpetual Stream Preferred Stock, priced at €80 per share. This euro-based preferred stock sale is part of Strategy's broader strategy to enhance its Bitcoin holdings, which have become a focal point of its financial operations.

Details of the preferred stock offering include pricing and expected proceeds

According to an official statement released on November 7, the issuance and sale of the preferred stock are expected to close on November 13. Strategy anticipates generating gross proceeds of €620 million, equivalent to approximately $715 million. After adjusting for expenses, the net proceeds are expected to be around €608.8 million, or $702 million. This upsized deal, initially set at €350 million, reflects the company's ongoing commitment to expanding its Bitcoin acquisitions.

Recent Bitcoin acquisitions highlight Strategy's ongoing buying approach

In a recent development on November 3, Strategy disclosed its acquisition of an additional 397 Bitcoin for about $45.6 million, with each Bitcoin purchased at an average price of $114,771. This latest buy has brought the company’s total Bitcoin holdings to 641,205 BTC, accumulated at an overall cost of approximately $47.5 billion, averaging $74,057 per coin. With current Bitcoin prices hovering around $100,993, this significant collection is valued at approximately $64.7 billion, showcasing the firm's aggressive approach to asset accumulation.

Dividend structure and financial implications for preferred stock investors

The newly issued STRE Stock will offer regular dividends at a rate of 10% annually on each €100 share. Dividend payments will commence on December 31 and will be made solely in cash. However, in cases where dividends are unpaid, interest will accrue at an initial rate of 10% plus an additional 100 basis points, effectively raising it to 11%. If dividends remain unpaid, this rate could increase by 1% per annum, capping at a maximum of 18% yearly. This structure provides an appealing proposition for investors looking for income from preferred shares while also supporting the company’s aggressive Bitcoin strategy.