- Strategy unveils euro STRE share sale to fund future Bitcoin acquisitions and growth.
- Analysts see Strategy’s DAT model as sustainable despite bearish market sentiment.
- Kalshi traders bet Bitcoin falls below $100K as Strategy expands holdings.
Bitcoin accumulation by the Michael Saylor-led Strategy is set to increase. The company has revealed its intentions to sell euro-based preferred shares. This is to finance future BTC acquisitions and other company operations. The move comes as Kalshi traders increasingly bet on BTC falling below $100,000 before the year ends.
Strategy’s New Plan Targets Bitcoin Growth
The company will offer 3,500,000 shares of its perpetual preferred stock that is denominated in euro, which is called STRE. According to a Strategy media statement, the proceeds will go toward general corporate purposes, including Bitcoin acquisitions.
The offering is still awaiting regulatory approval. The STRE stock will carry a 10% annual cumulative dividend on a €100 face value. It is payable quarterly from December 31, 2025.
Unpaid dividends will keep growing quarterly by 100 basis points until they reach a peak of 18%. As seen in this plan, Strategy will continue to use equity financing to increase its Bitcoin holdings.
Pioneering Crypto Treasury Model Tested
Under Executive Chairman Michael Saylor, Strategy pioneered the Digital Asset Treasury (DAT) model. It is an approach that uses both equity and debt to finance crypto accumulation. The company began this method of BTC accumulation in 2020.
At that time, it deployed $250 million from its balance sheet to buy Bitcoin. Their move set a precedent for corporate treasury diversification. Despite its continued expansion, Strategy’s stock (MSTR) closed 1.8% lower at $264.67 on Monday. It has fallen nearly 25% in the past month, per TradingView data.
Bitcoin has fallen 1.98% over the past 24 hours to trade at $104,438, compared to a prior close of $106,548. TradingView currently shows the asset fell by 8.4% over the course of the week and 14.7% over the past month.
BTC price. Source: TradingView
Also Read | Bitcoin Nears $107K as Retail Inflows Collapse 80% Amid ETF Shift
Trading Volume Surges Amid De-Risking Moves
CoinGlass derivatives data indicate a 57.5% increase in volume to $123.69 billion. This is an indication that trading activity continues to rise even as price pull back. However, open interest declined 3.94% to 67.68 billion. This shows that numerous traders could be de-risking as the volatility keeps growing.
Source: Coinglass
Meanwhile, Kalshi data shows a 69% probability that BTC dips below $100,000 this year. It is up 12 points in the last week. The “Yes” contract reflects bearish sentiment among market participants as liquidity tightens and macro uncertainty grows.
Source: Kalshi
Also Read | Crypto Market Crash Deepens as Bitcoin and Ethereum Lose Momentum: Report
