Strategy Prices €620M STRE Offering at 12.5% Effective Yield to Investors

Strategy Inc finalized terms for its European preferred stock sale on Nov. 6, allocating 7.75 million shares at €80 per unit. The volume expanded by 121% from the company’s initial Nov. 3 proposal of 3.5 million shares.

Buyers gain a 12.5% actual annual return despite the security’s 10% stated rate, according to a Business Wire press release. Shareholders acquire positions at €80 while receiving €10 yearly payments calculated against €100 face value. Management intends to allocate incoming funds toward Bitcoin BTC $102 270 24h volatility: 1.0% Market cap: $2.04 T Vol. 24h: $88.50 B treasury expansion and general operations.

Capital Structure and Settlement Schedule

Total gross receipts reach €620 million, translating to $715.1 million at the Nov. 6 conversion rate of €1.00 to $1.1534. Net proceeds after banking fees and expenses amount to €608.8 million, equivalent to $702.2 million.

Transaction completion occurs Nov. 13, 2025, subject to routine closing requirements. Cash distributions happen quarterly at the end of March, June, September and December, beginning with the Dec. 31, 2025 payment.

The new securities sit subordinate to approximately $8.25 billion in corporate bonds and rank below previously issued STRF and STRC preferred instruments. Distribution targeted professional investment firms and qualified purchasers across European markets, excluding individual retail participation.

Year-Long Funding Initiative

This marks the company’s seventh major financing transaction during 2025. Strategy’s initial STRE offering announcement proposed 3.5 million shares just three days before robust investor appetite prompted enlargement.

The company has secured approximately $14 billion across multiple capital-raising activities in 2025. January’s STRK placement generated $563.2 million, while February’s convertible debt issuance brought $1.99 billion. Common stock market sales between Q1 and April contributed $6.6 billion. A May STRD transaction added $979.7 million, followed by July’s $2.5 billion STRC placement.

Current Bitcoin reserves stand at 641,205 coins as of early November. At current $100,514 valuation, fresh proceeds could finance acquisition of roughly 6,986 additional BTC.

Distribution Terms and Syndicate

Missed dividend payments incur compounding penalties on overdue balances. Interest charges start at 11% annually, rising one percentage point per quarter until full payment, with an 18% yearly maximum.

A syndicate of seven investment banks coordinated the transaction, led by Barclays and Morgan Stanley. The company executed the sale through its active SEC shelf registration program. Other corporate Bitcoin holders like MARA Holdings’ Bitcoin accumulation similarly utilize capital markets to fund digital asset strategies.

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