Coinspeaker
18 hour ago
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Strategy Finalizes €620M STRE Offering at 12.5% Effective Yield

Strategy Inc Finalizes European Stock Sale

  • Strategy Inc completed its European preferred stock sale, offering 7.75 million shares at €80 each.
  • The initial proposal was for 3.5 million shares, marking a 121% increase due to high demand.
  • Investors receive a 12.5% actual annual return on the stock despite a stated rate of 10%, with yearly payments based on a €100 face value.
  • Funds will be used for [Bitcoin](https://holder.io/coins/btc/) treasury expansion and general operations.

Financial Details

  • Total gross receipts from the sale amounted to €620 million ($715.1 million USD).
  • Net proceeds, after fees, are €608.8 million ($702.2 million USD).
  • Settlement is set for Nov. 13, 2025, with quarterly cash distributions starting Dec. 31, 2025.
  • The securities are subordinate to $8.25 billion in corporate bonds and other prior instruments.

Funding Initiative

  • This is the seventh major financing transaction by Strategy Inc in 2025, raising nearly $14 billion throughout the year.
  • Previous transactions include STRK placement, convertible debt issuance, common stock sales, and STRD and STRC transactions.
  • Current Bitcoin reserves stand at 641,205 coins; new funds could potentially add approximately 6,986 BTC.

Distribution Terms

  • Missed dividends incur compounding penalties with interest starting at 11% annually, increasing up to 18% per year until full payment.
  • The transaction was coordinated by a syndicate of seven investment banks, led by Barclays and Morgan Stanley.
  • Executed through an active SEC shelf registration program, similar to other corporate Bitcoin holders using capital markets for digital asset strategies.