Strategy, formerly known as MicroStrategy, has announced an offering of 3.5 million shares of its 10.00% Series A perpetual STRE preferred stock. This marks the first time a Euro-dominated preferred stock offering will be available to institutional investors in Europe and globally. The company plans to use the proceeds to acquire more Bitcoin and support general corporate activities.
The newly issued STRE preferred stock will offer regular cumulative dividends, payable in cash starting December 31. If dividends go unpaid, they will accrue at a rate of 10% per year, plus an additional 100 basis points. The company aims to use the capital raised from this offering to continue its strategy of expanding its Bitcoin holdings, which has become a core part of its business model. The underwriters managing the offering include major financial institutions such as Barclays, Morgan Stanley, and TD Securities.
Market Reaction to the Offering
In response to the announcement, Strategyโs stock (MSTR) saw a slight dip, closing down 1.80% at $264.68 on Monday. The stock continued to slide in after-hours trading, dropping another 2.60%. This drop reflects ongoing investor concerns regarding the cryptocurrency marketโs volatility, particularly after Bitcoin prices took a hit. Over the past month, MSTR has lost more than 26% in value.
Strategy is offering $STRE (โStreamโ), our first ever Euro-Denominated Perpetual Preferred Stock, to European and global institutional investors. $MSTR pic.twitter.com/tCectc2uA2
โ Michael Saylor (@saylor) November 3, 2025
Despite this, Canaccord Genuity has maintained a buy rating for MSTR and increased its price target to $474. The firmโs strong Q3 2025 results, including $2.8 billion in net income and $3.9 billion in unrealized gains from its Bitcoin holdings, have helped bolster confidence among analysts.
Bitcoin Holdings and Market Challenges
In the past quarter, Strategy acquired an additional 397 BTC for $45.6 million at an average price of $114,771 per Bitcoin. This brings its total Bitcoin holdings to 641,205 BTC, worth approximately $68.06 billion at current market prices. While the companyโs Bitcoin Net Asset Value (NAV) remains substantial, it has fallen from over $30 billion in recent months due to fluctuating Bitcoin prices.
Currently, Bitcoin is trading at around $104,530, marking a 3% decrease in the past 24 hours. This decline has contributed to a decrease in Strategyโs unrealized gains, which now sit below $20 billion. Investors are expressing concerns about Bitcoinโs price stability, as the cryptocurrency continues to face downward pressure.
