Strategy Bolsters Bitcoin Treasury with New Acquisition and Euro-Denominated Stock Offering

Strategy, the prominent Bitcoin investment firm formerly known as MicroStrategy, continues to solidify its position as the world’s largest corporate holder of Bitcoin. According to an 8-K filing with the U.S. Securities and Exchange Commission (SEC) on Monday, the company recently acquired an additional 397 Bitcoins, investing approximately $45.6 million at an average price of $114,771 per coin.

This latest acquisition further expands Strategy’s substantial digital asset portfolio. Concurrently, the company announced its intention to issue 3.5 million shares of Euro-denominated perpetual preferred stock, designated as STRE. This new offering is poised to serve as a crucial funding mechanism for Strategy’s ongoing strategy of accumulating Bitcoin.

A Dominant Bitcoin Portfolio and Significant Profits

With this recent purchase, Strategy’s total Bitcoin holdings now stand at an impressive 641,205 BTC, collectively valued at approximately $69 billion. Michael Saylor, the company’s founder and Executive Chairman, highlighted the remarkable success of their Bitcoin-centric strategy. Since embarking on its Bitcoin allocation journey in 2020, Strategy has invested a cumulative total of approximately $47.5 billion, achieving an average acquisition cost of $74,057 per Bitcoin. This strategic foresight has translated into substantial financial gains, with the company currently sitting on an estimated unrealized profit of $21.5 billion.

Strategic Funding for Continued Expansion

The capital for last week’s Bitcoin acquisition was primarily generated from the sales of Strategy’s Class A common stock (MSTR) and its existing perpetual preferred stocks, including STRK (Strike), Strife (STRF), and Stride (STRD).

These issuances are integral to Strategy’s ambitious “42/42” fundraising initiative, which aims to secure $84 billion by 2027 through a combination of stock and convertible bond offerings. The company’s four perpetual preferred stocks—STRK, STRC, STRF, and STRD—have respective issuance sizes of $21 billion, $4.2 billion, $2.1 billion, and $4.2 billion, demonstrating the scale of its commitment to leveraging diverse financial instruments for Bitcoin accumulation.

Introducing STRE: Euro-Denominated Preferred Stock

Strategy’s announcement detailed that the proceeds from the forthcoming Euro-denominated STRE preferred stock will be allocated to general corporate purposes. These include further strategic purchases of Bitcoin and bolstering the company’s working capital. The company emphasized in its press release that the successful execution of this offering is contingent upon prevailing market conditions and the completion of regulatory review processes.

According to the preliminary prospectus, the STRE shares will feature a par value of €100 each, offering an attractive annualized dividend rate of 10%. These cash dividends are slated for quarterly distribution, commencing December 31, 2025, subject to board declaration. In the event of any delayed dividend payments, the unpaid amounts will accrue on a compound basis quarterly, starting with an initial rate of 11% and escalating by 1% each subsequent period, up to a maximum of 18%.