- Strategy Inc. to raise €620M via IPO of 7.75M Series A Preferred Shares priced at €80 each.
- Funds to boost the capital base, purchase Bitcoin, and strengthen long-term corporate liquidity.
- STRE offers a 10% annual dividend, compounding up to 18% for deferred payments.
Strategy Inc., previously MicroStrategy, has affirmatively priced its Initial Public Offering (IPO) of 7,750,000 shares of its 10% Series A Preferred Stock levels as Perpetuals (STRE) priced at $80 a share. The settlement date of this offering would be November 13, 2025.
In this sale, the company anticipates collecting a total of 620 million euros, or approximately 715.1 million, in gross proceeds. The strategy expects net proceeds of nearly €608.8 million, or an equivalent of $702.2 million, after deduction of underwriting fees and expenses, at the prevailing exchange rate of 1 Euro = 1.1534 US dollars.
The company intends to apply the capital raised as a general corporate purpose. This involves buying additional Bitcoin and satisfying working capital needs. The bid will enable Strategy to improve its capital base without selling its Bitcoin assets.
The operation, also, helps the company with its long-term strategy of growing Bitcoin holdings, as it is still clearly loyal to the asset in spite of the recent market flattening.
Strategy Inc Details 10% Dividend Policy and Compounding Structure
The STRE Stock shall pay a cumulative dividend at the rate of 10% on the mentioned price of 100 euros per share annually. The payment will be conducted on a quarterly basis starting on December 31, 2025, subject to the approval of the board.
Unless dividends are declared and paid, the accumulation will compound with an annual rate of 11%. The rate will increase by 1% in every quarter, up to a maximum of 18%, until payment of all the unpaid dividends.
In the event that Strategy shall withhold any dividend payout, this company has to provide a dividend notice to shareholders justifying the deferral.
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It will then have a period of 60 days to raise funds, which may be through issuing more shares to clear all the outstanding dividends, including accrued interest. Nonetheless, dividend payment will still be subject to the presence of other classes of preferred stock that have high payout priorities.
STRE Investors Protected Under New Redemption and Buyback Terms
Under two conditions the company may also have the right to redeem or repurchase all the STRE shares. The former is applicable when less than a quarter of the initial stock is held. The second one is used when some tax-related events influence the STRE structure. The investors will get a full liquidation amount in both situations as well as in the case of an accumulated unpaid dividend amount.
Every share of STRE has a liquidation preference amounting to 100 euros. Nevertheless, this value can be changed and will always represent the greatest of three values: the quoted price of 100, the most recent price of sale, or the 10-day moving average of sale prices.
This arrangement helps the investors to be compensated fairly even in the volatile markets. It also protects them in case of redemption or liquidation losses.
Simultaneously, it is being run by Barclays, Morgan Stanley, Moelis, SG Americas, TD Securities, Canaccord Genuity, and StoneX Financial. Every company is acting as a joint book-running manager. The sale is held in a pending SEC shelf registration, whereby Strategy is allowed to sell various different types of securities without additional approvals of each new issue.
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