Strategy Reveals New IPO With Coming Launch of Preferred Stock ‘STRE’

The world’s largest corporate holder of Bitcoin (BTC) says it plans to launch a new initial public offering (IPO) of a euro-denominated perpetual preferred stock.

Strategy (MSTR) says it plans to issue 3.5 million shares of the Series A Perpetual Stream Preferred Stock (STRE).

The Bitcoin treasury firm intends to use the proceeds from the offering for general corporate purposes, which include bolstering its working capital and funding the acquisition of more BTC.

The company already holds 641,205 of the flagship cryptocurrency worth over $65 billion based on the asset’s current price of $101,967.

STRE will be offered at 100 euros ($115) per share, which will accumulate cumulative dividends equivalent to 10% of the stock’s price per year. Strategy says the declared regular dividends will be paid quarterly in cash starting December 31st this year.

“If Strategy fails to declare a regular dividend on or prior to a given regular record date, such failure will constitute the issuance of a notice of deferral.”

The regular dividends will compound quarterly if not paid on time. Strategy says continued failure to fully settle the regular dividends and the compounded dividends will increase the rate by 100 basis points per annum for each subsequent regular dividend period up to a maximum rate of 18% per year.

STRE will follow Strategy’s other preferred stocks in the US, including the 8% Convertible Preferred Stock (STRK), the 10% fixed-rate Income-Focused Preferred Stock (STRF), the 10% non-cumulative High-Yield Higher-Risk Preferred Stock (STRD) and the variable-rate High-Yield Stable Preferred Stock (STRC).

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