MicroStrategy Incorporated has made headlines again this week by successfully raising approximately $715 million through the pricing of its new Series A Perpetual Stream Preferred Stock (ticker: STRE) at 80 euros per share. The funds raised are earmarked primarily for expanding the company’s already substantial Bitcoin holdings while also supporting some general business needs.
The STRE shares promise a 10% annual dividend, paid quarterly, which can rise to as much as 18% if payments are deferred. This makes them one of the most attractive high-yield options within MicroStrategy’s suite of preferred stock offerings.
Despite this ambitious push, MicroStrategy’s recent Bitcoin acquisition efforts show signs of slowing down. In the third quarter, the company added only 1,417 BTC to its portfolio, a stark contrast to the over 9,000 BTC acquired in the second quarter and approximately 12,000 BTC in the first. Currently, MicroStrategy holds 640,808 BTC, representing about 3.1% of Bitcoin’s total circulating supply. In light of these new acquisitions, the company’s market premium has also dipped to approximately 1.2 times the net asset value, marking its lowest point since early 2023.
The decision to offer more shares is backed by a remarkably strong investor interest, as the initial filing aimed at 3.5 million shares was ultimately expanded to 7.75 million—illustrating that the appetite for exposure to MicroStrategy’s Bitcoin-centric business model remains robust. This is particularly noteworthy as the company continues to find buyers for its high-yield securities.
However, it hasn’t all been smooth sailing for MicroStrategy. S&P Global Ratings assigned the company a B- credit rating in October, classifying it as non-investment grade due to its concentrated Bitcoin holdings. Additionally, MicroStrategy experienced a significant revenue drop in the third quarter, bringing in $2.8 billion compared to $10 billion in the previous quarter. The MSTR stock price has also faced challenges, trading just under $235 as of the latest updates.
While the STRE shares are set to pay dividends starting December 31, 2025, they are not available to retail investors in the European Union or the United Kingdom, as these regions have been excluded from the offering. This move highlights the company’s strategic focus on securing funds domestically while navigating the complex landscape of international investment regulations.
In the broader market context, Bitcoin prices have remained resilient, hovering above $100,000 despite ongoing volatility and economic pressures. Analysts remain hopeful that MicroStrategy will ramp up its Bitcoin purchases once market conditions become more favorable and premiums improve. Furthermore, following the introduction of its first Treasury Preferred series (STRC) in July that raised $4.2 billion, MicroStrategy has shown a continuous stream of perpetual preferred stock offerings this year, including the recent launch of the STRE series.
For investors watching this space, MicroStrategy’s latest funding effort reaffirms its resolute commitment to Bitcoin as a core asset, and its future transactions could significantly impact the cryptocurrency’s market dynamics.
