KEY FACTS: Strategy, the leading Bitcoin treasury firm, has priced its new euro-denominated Series A Perpetual Stream Preferred Stock (STRE) at 80 euros ($92.50) per share, raising approximately 608.8 million euros ($705 million) in net proceeds to primarily acquire more Bitcoin and fund general corporate purposes, with settlement set for November 13, 2025. The offering targets institutional investors and excludes EU and UK retail buyers due to regulatory constraints, positioning STRE senior to existing STRK, STRD, and common stock but junior to STRF, STRC, and debt. The move reflects Strategy’s aggressive BTC accumulation strategy despite October’s slowed purchases and broader crypto market volatility.

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Source: Strategy

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Strategy Prices New Preferred Shares "STRE" to Fund Bitcoin Accumulation

Strategy, the prominent crypto treasury firm, has announced the pricing of its latest Series A Perpetual Stream Preferred Stock (STRE). This euro-denominated offering, priced at 80 euros ($92.50) per share, is poised to raise approximately 608.8 million euros in net proceeds, directly injecting them into the company's coffers. The primary objective is to accelerate the acquisition of additional Bitcoin (BTC) holdings while allocating funds for broader corporate initiatives. With settlement slated for November 13, this capital raise signals Strategy's determination to double down on its core asset even as the crypto sector grapples with headwinds.

The announcement, made public on November 7 via a detailed press release, comes at a pivotal moment for Strategy and the wider cryptocurrency ecosystem. As traditional financial instruments increasingly intersect with digital assets, Strategy's decision to tap European capital markets through perpetual preferred shares underscores a maturing approach to funding crypto exposure. These shares, which lack a fixed maturity date and offer perpetual dividends, represent a hybrid between debt and equity, appealing to institutional investors seeking yield in a high-risk environment.

The STRE shares are engineered to fit neatly within Strategy's complex capital structure, providing a layer of seniority that could attract cautious investors. According to the company's term sheet, these new instruments rank above Strategy's existing Perpetual Strike (STRK), Perpetual Stride (STRD), and common stock in the event of liquidation or dividend payments. However, they remain subordinate to the more senior Perpetual Strife (STRF), Variable Rate Perpetual Stretch (STRC) shares, and any outstanding debt obligations. This hierarchical positioning is crucial in a firm heavily leveraged toward volatile assets like Bitcoin, as it balances risk allocation among stakeholders.

Notably, the offering carries restrictions that reflect regulatory sensitivities in key markets. Strategy has explicitly stated that the STRE shares will not be available to retail investors in the European Union or the United Kingdom. This exclusion aligns with stringent EU and UK rules on high-risk financial products, particularly those tied to cryptocurrencies, which have been under increased scrutiny following recent market fluctuations. Institutional buyers, however, stand to benefit from this targeted raise, potentially viewing it as a gateway to indirect Bitcoin exposure without the complexities of direct custody.

The funds raised (equivalent to roughly $705 million at current exchange rates) will primarily fuel Strategy's Bitcoin accumulation strategy. The company has long positioned itself as a "Bitcoin treasury" pioneer, amassing significant BTC reserves to hedge against fiat inflation and capitalize on long-term appreciation. In recent months, however, acquisition activity has tempered, a direct response to macroeconomic pressures and sector-wide corrections. This new infusion could reignite that momentum, allowing Strategy to scoop up BTC at what it perceives as discounted prices during the current dip.

Strategy's latest financial maneuver is a calculated response to a confluence of challenges plaguing crypto treasury firms. October marked a noticeable slowdown in the company's Bitcoin purchases, mirroring a wider industry contraction triggered by declining crypto prices and waning investor enthusiasm. The total cryptocurrency market capitalization, which peaked earlier in the year, has shed over 15% in the past quarter, dragging down valuations for firms like Strategy that derive much of their worth from digital asset holdings.

The firm, helmed by vocal Bitcoin advocate Michael Saylor, has repeatedly turned to creative financing to fuel its BTC obsession. Earlier this year, Saylor publicly dismissed speculation about acquiring rival crypto treasuries, citing "too much uncertainty" in the space. His comments underscored a pragmatic approach: focus on organic growth rather than M&A distractions. Yet, even as Strategy pushes forward, the backdrop remains fraught. The company's third-quarter revenue plummeted to $2.8 billion from a robust $10 billion in the second quarter—a stark 72% decline that has fueled concerns about sustainability.

Since hitting highs in July, Strategy's shares have trended downward, shedding nearly 40% of their value and moving in lockstep with peers in the crypto treasury niche. Trading charts from platforms like TradingView illustrate this synchronized descent, where dips in Bitcoin prices amplify pressure on equity valuations. Analysts point to a vicious cycle: As BTC volatility erodes confidence, treasury firms face higher borrowing costs, which in turn hampers their ability to acquire more of the very asset propping up their balance sheets.

Compounding these operational hurdles is a fresh blow from the ratings world. In October, S&P Global Ratings assigned Strategy a B- credit rating, a classification that brands the company as "non-investment grade" with pronounced speculative characteristics. Strategy's B- sits a precarious 15 notches below AAA and firmly in junk bond territory, where BB or lower signals elevated default risk.

S&P's rationale cuts to the heart of Strategy's business model: an overreliance on Bitcoin. The agency highlighted the "concentration risk" posed by the firm's BTC-heavy portfolio, arguing that it exposes investors to outsized swings in a single asset class. Moreover, S&P critiqued the lack of diversification in Strategy's operations and revenue streams, noting that the company's fortunes are inexorably tied to crypto market cycles rather than balanced across multiple sectors. In a report accompanying the downgrade, S&P warned that this narrow focus could amplify vulnerabilities during prolonged bear markets, potentially straining liquidity and creditor repayments.

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https://x.com/i/status/1985611396474687768

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These concerns have rippled through investor sentiment. Institutional lenders have tightened terms on Strategy's debt facilities, while equity holders grapple with a narrative of high reward shadowed by high risk. Yet, for all the red flags, the B- rating doesn't spell doom. It merely underscores the speculative allure that drew many to Strategy in the first place—a bet on Bitcoin's eventual triumph over traditional finance.

Strategy's approach, layering perpetual instruments like STRE atop a foundation of long-dated debt, creates breathing room for market recoveries. If Bitcoin rebounds as proponents predict, these bets could yield exponential returns, vindicating the risk appetite. Even S&P, while critical, acknowledged Strategy's "strong liquidity position" in the near term, suggesting the B- tag is more cautionary than condemnatory.

Strategy's STRE pricing is a referendum on the viability of crypto treasuries in a risk-averse world. For proponents, it exemplifies visionary leadership—leveraging capital markets to amass what they see as the ultimate store of value. Critics, however, decry it as doubling down on a flawed model, one that invites regulatory crackdowns and investor flight during inevitable corrections.

Looking ahead, the November 13 settlement date looms as a litmus test. If the full 608.8 million euros materializes, Strategy could swell its BTC reserves by thousands of coins, potentially stabilizing its balance sheet and signaling market confidence. Yet, with Bitcoin hovering around $60,000 amid geopolitical tensions and impending U.S. policy shifts, timing remains everything.

Information Sources:

• Strategy/ X
• Binance
• Cointelegraph

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