Strategy Inc. announced a proposed initial public offering of 3.5 million shares of its 10 % Series A Perpetual Stream Preferred Stock (STRE). The shares are euro‑denominated, carry a cumulative 10 % dividend, and are intended to raise capital for the firm’s Bitcoin acquisition program.
The offering is part of Strategy’s “42/42 Plan,” which aims to raise $84 billion in equity and debt by the end of 2027. The plan includes at‑the‑market sales, multiple lines of perpetual preferred stock, and convertible notes, all designed to support the company’s ongoing Bitcoin purchases.
Strategy’s Bitcoin holdings total approximately 641,205 BTC, valued at about $68.5 billion as of early November 2025, representing more than 3 % of all Bitcoin ever issued. The preferred stock will provide a steady stream of capital without relying solely on equity or debt markets, potentially reducing share dilution and strengthening the balance sheet.
In Q3 2025, Strategy reported a net income of $2.8 billion, a turnaround from a net loss in Q3 2024, largely driven by fair‑value accounting for Bitcoin that added $18 billion to digital assets and $12.7 billion to total equity. The software business generated $128 million in revenue, with subscription services rising 65.4 % to $46 million.
S&P Global Ratings assigned Strategy a ‘B‑’ issuer credit rating with a stable outlook. Key risks include Bitcoin market volatility, concentration risk from heavy reliance on Bitcoin, and potential dilution from equity issuance. Management remains confident in the Bitcoin strategy and its ability to generate value.
The proposed offering reflects Strategy’s continued commitment to its Bitcoin‑centric business model and its broader capital‑raising strategy to fund future acquisitions.
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