Strategy Issues New Stock to Fund Bitcoin Purchases
Crypto treasury firm Strategy has announced plans to issue a euro-denominated perpetual preferred stock as part of its continued efforts to accumulate Bitcoin. The new offering, labeled under the ticker STRE, aims to provide institutional investors in Europe and globally with access to the stock. Retail investors in the EU and UK will not be eligible for participation.
Stock Details and Dividend Structure
Strategy will offer 3.5 million STRE shares, each with a stated value of 100 euros (approximately $115). The shares carry a 10% annual cumulative dividend, distributed quarterly starting December 31. The net proceeds are earmarked primarily for further Bitcoin purchases and general corporate purposes.
- The STRE stock is aimed at "qualified investors" only.
- Quarterly dividends will be paid out based on the stated amount.
- The proceeds will be deployed to acquire additional Bitcoin.
Continued Focus on Bitcoin Accumulation
Strategys business approach, established by founder Michael Saylor in 2020, centers on raising capital to acquire Bitcoin. The company currently holds 641,205 BTC, purchased for about $47.49 billion. This makes it the largest public company holder of Bitcoin. The firm recently increased its holdings and shows no signs of changing its accumulation strategy.
Michael Saylor emphasized to investors that the company will not pursue mergers or acquisitions despite a rise in similar crypto treasury entrants. Saylor said, "the focus is to sell digital credit, improve the balance sheet, buy Bitcoin and communicate that to the credit and the equity investors."
Industry Landscape
The success of Strategys business model has influenced other organizations to adopt a similar method, raising billions to amass Bitcoin and other digital assets. However, some analysts warn that increased competition could pressure the sustainability of these treasury-focused business models.
Book-running managers for the new STRE share sale include Barclays, Morgan Stanley, Moelis, and TD Securities.
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