Strategy Targets European Investors with New STRE Share Offering to Boost Bitcoin Holdings
In a bold move to reinforce its Bitcoin acquisition strategy, Strategy — formerly known as MicroStrategy — has unveiled plans to raise €350 million (around $378 million) by issuing a new Euro-denominated preferred stock called Stream (STRE). This initiative marks the company’s latest effort to tap into European capital markets, expanding its financial toolbox to support its long-standing Bitcoin-focused treasury model.
The introduction of STRE brings the total number of capital-raising instruments in Strategy’s arsenal to five. These include its publicly traded common stock (MSTR) and four other preferred shares: Strife (STRF), Strike (STRK), Stride (STRD), and Stretch (STRC). Many of these preferred shares feature dividend payments and some are convertible into common stock, offering flexible fundraising mechanisms that the company leverages to purchase more Bitcoin.
On November 4th, Strategy added 397 BTC to its holdings — an investment worth approximately $45.6 million at the time — bringing its total Bitcoin reserve to an impressive 641,205 BTC. This makes Strategy the largest corporate holder of Bitcoin globally. The funds for these recent acquisitions were primarily generated from the sale of MSTR, STRF, and STRK shares, as disclosed in a regulatory filing with the SEC.
Although the company made a significant purchase of 21,000 BTC (valued at $2.4 billion) in July, its Bitcoin buying activity has since slowed, with more recent acquisitions remaining under the 500 BTC threshold. Nevertheless, Strategy’s overall Bitcoin position, acquired at a cost basis of approximately $47,200 per coin, is currently valued at around $66 billion. This gives the firm an unrealized gain of nearly $19 billion, even in the face of recent market declines.
However, Strategy’s aggressive Bitcoin-buying playbook has recently encountered headwinds. Analysts have raised concerns that the market-to-net-asset-value (mNAV) of the company’s holdings may fall below 1 — a critical threshold. Should this occur, Strategy would be restricted from issuing additional MSTR shares to raise capital for further Bitcoin purchases, putting pressure on the firm to explore alternative funding channels, such as the European STRE offering.
The decision to launch a Euro-denominated preferred stock appears to be a strategic pivot aimed at diversifying funding sources and mitigating regulatory constraints in the U.S. By targeting the Eurozone, Strategy not only accesses new capital pools but also positions itself to take advantage of Bitcoin price dips — which it views as strategic buying opportunities.
At the time of the announcement, MSTR shares had dipped 3.5% to $264, reflecting broader volatility in both the equity and crypto markets. Year-to-date, MSTR stock was down 8%, while Bitcoin had managed a modest 11% gain. Comparatively, the Nasdaq Composite Index surged by 23%, highlighting the relative underperformance of both Strategy and Bitcoin when measured against traditional equities.
Despite this, Strategy remains committed to its Bitcoin-first approach. Since initiating its BTC strategy in 2020 with a $250 million purchase of 21,400 BTC, the firm has continuously doubled down on its belief in Bitcoin as a superior store of value, especially in the face of global currency devaluation and macroeconomic uncertainty.
The introduction of STRE could also signal a broader trend among institutional Bitcoin holders to diversify funding sources beyond U.S. markets. With regulatory scrutiny intensifying in America, Europe may offer a more flexible environment for crypto-aligned financial strategies. Moreover, by denominating STRE in euros, Strategy may be seeking to hedge currency risks or appeal to investors who prefer exposure outside of the dollar.
Another point of interest is the structural design of the preferred shares. Typically, preferred stock offers fixed dividends and has a liquidation preference over common shares, making it attractive to conservative investors seeking income with lower volatility. By issuing a Euro-denominated preferred stock, Strategy may attract European institutional investors or pension funds that have mandates favoring fixed-income-like instruments over volatile equities or crypto assets.
Furthermore, the timing of the STRE offering could be deliberate. With Bitcoin recently undergoing a price correction, Strategy appears poised to capitalize on what it views as a discounted buying window. Historically, the firm has used such market downturns to accumulate additional BTC at favorable prices — a strategy that has significantly amplified its unrealized profits during bull markets.
From a macroeconomic standpoint, tapping into the European capital markets may also offer lower borrowing costs compared to the U.S., where interest rates remain elevated. Eurozone monetary policy has been comparatively dovish, which could translate into more favorable terms for Strategy’s fundraising efforts.
Finally, the STRE issuance reinforces Strategy’s long-term vision: to position Bitcoin as a central pillar of corporate treasury management. While critics argue that this approach exposes the company to excessive volatility, supporters view it as a pioneering blueprint for future enterprise capital allocation in the digital age.
In essence, Strategy’s move into the Eurozone with the STRE offering underscores its unwavering belief in Bitcoin’s long-term value proposition. By broadening its fundraising strategy across geographies and financial instruments, the company is not only enhancing its liquidity but also reinforcing its identity as a trailblazer in corporate crypto adoption.