Strategy prices new STRE preferred shares to fund Bitcoin accumulation

Crypto treasury institution Strategy is moving guardant with its program to grow Bitcoin holdings, pricing a caller euro-denominated perpetual preferred banal designed to money further crypto purchases.

The institution said connected Friday that its Series A Perpetual Stream Preferred Stock (STRE) volition debut astatine 80 euros ($92.50) per share, raising an estimated 608.8 cardinal euros successful nett proceeds. Strategy plans to usage the funds to bargain much Bitcoin (BTC) and for wide firm purposes. The banal offering is expected to settee connected Nov. 13.

The caller STRE shares are elder to Strategy’s Perpetual Strike (STRK), Perpetual Stride (STRD) and communal stock, but are subordinate to its Perpetual Strife (STRF), Variable Rate Perpetual Stretch (STRC) shares and outstanding debt.

STRE word expanse and specifications. Source: Strategy

The STRE offering volition not beryllium disposable to retail investors successful the European Union oregon the United Kingdom, Strategy said.

The latest superior rise comes aft the institution had slowed its gait of acquisitions successful October amid a wide downturn successful crypto treasury companies and a diminution successful the broader crypto market.

Related: Saylor says Strategy improbable to bargain up rivals, arsenic there’s excessively overmuch uncertainty

Strategy is struggling amid a downturn successful treasury companies

Strategy posted $2.8 cardinal successful gross successful Q3, down from $10 cardinal successful Q2, and the company’s banal has been successful a downtrend since July.

Ratings work S&P Global Ratings slapped Strategy with a B- recognition rating successful October, classifying the institution arsenic a “non-investment grade” entity featuring speculative characteristics.

Strategy’s banal has declined alongside different crypto treasury companies. Source: TradingView

For context, the S&P’s apical recognition standing is AAA, 15 levels higher than B-. A standing of BB and little is considered “non-investment grade.”

S&P said the company’s attraction of BTC holdings poses a hazard to investors, and that it is excessively narrowly focused connected BTC alternatively than diversifying its concern operations and income streams.

Despite this, Strategy is improbable to liquidate its BTC holdings during the adjacent crypto carnivore marketplace oregon spell bust, expert and BTC capitalist Willy Woo said.