Strategy Enters the European Market with Stream Perpetual Shares at 10% Annual Interest
Date: 2025-11-05 Author: Henry Casey Categories: BUSINESS
Strategy has introduced a new euro-denominated preferred share called Stream (STRE) to the European market. These securities will be listed on the Euro MTF platform in Luxembourg, with clearing provided by Euroclear and Clearstream. The investment product is targeted at institutional investors and participants in the European Economic Area.
The main advantage of STRE is a fixed rate of return of 10% per annum, with dividend payments every three months. However, if the company decides to temporarily suspend payments, the rate increases by 1% for each missed period, reaching a maximum of 18%. The par value of one share is €100 (approximately $115).
Strategy plans to use the proceeds from the offering to replenish its Bitcoin reserves and support ongoing business operations. STRE shares rank higher in the capital structure than STRK, STRD, and MSTR common stock, but are inferior to debt instruments, including the STRF and STRC series.
Stream shares do not carry voting rights and are not callable, except in special circumstances related to tax changes or if less than a quarter of the initial issue remains outstanding. In the event of fundamental changes to the company, investors will be able to request a buyback at the par value, taking into account accumulated dividends.
The liquidation price of these shares will be determined daily and will be the higher of the par value (€100), the market price the day before, or the average price over the last ten trading days.
Leading international banks and financial institutions, including Barclays Bank PLC and Morgan Stanley & Co., have undertaken the arrangements for the offering. International, Moelis & Company, SG Americas Securities, TD Securities (USA), Canaccord Genuity, and StoneX Financial are acting as joint managers for the new instrument.
Strategy emphasizes that the launch of STRE is part of a larger plan to strengthen the company's position in the European market and expand its capital raising capabilities for further Bitcoin investments.
It's worth noting that the announcement of the new instrument followed shortly after the publication of Strategy's quarterly report, which estimated net income for the third quarter of 2025 at $2.8 billion, with unrealized gains on its Bitcoin portfolio at $3.9 billion.
Nevertheless, analysts at Cantor Fitzgerald, TD Cowen, and Maxim Group revised their forecasts for Strategy shares, citing a decline in the Bitcoin premium. They estimate that the average target price for the stock has reached its lowest level since May, and that Bitcoin's price must rise to $150,000 by the end of the year to achieve the company's corporate goals.
