Strategy Inc. (NASDAQ:MSTR) filed to launch a new euro-denominated Bitcoin (CRYPTO: BTC)-linked preferred stock, even as its shares fell below key support at $250.
New Offering Targets Bitcoin Expansion
Strategy announced plans to sell 3.5 million shares of its new 10.00% Series A Perpetual Stream Preferred Stock (STRE).
The issue will be registered under the U.S. Securities Act of 1933 and offered only to qualified investors in the European Economic Area and United Kingdom.
Each share carries a stated value of €100 ($114) and a 10% annual dividend paid quarterly.
Unpaid dividends will compound quarterly at 100 basis points per quarter, capped at 18%.
Proceeds will be used to acquire Bitcoin and support general corporate operations.
Redemption and Holder Protections
Strategy may redeem all STRE shares if the outstanding share count falls below 25 percent of the original issuance.
In addition, holders may request a repurchase at €100 ($114) per share, plus any unpaid dividends, if a fundamental change occurs.
Liquidation preference is €100 ($114) and adjusts daily based on market value or the prior ten-day average.
Furthermore, dividends are deferred until all senior preferred dividends are fully paid.
The company has also filed liquidity plans to sell other preferred or common shares to meet obligations.
Underwriters and Offering Terms
The offering will be managed by Barclays plc (NYSE:BCS), Morgan Stanley (NYSE:MS), Moelis & Company (NYSE:MC), Société Générale (OTC:SCGLY), Toronto-Dominion Bank (NYSE:TD), Canaccord Genuity Group (OTC:CCORF), and StoneX Group Inc. (NASDAQ:SNEX).
All sales will occur under an effective shelf registration with the U.S. Securities and Exchange Commission.
Strategy stated that the new security expands its capital base for Bitcoin accumulation.
The company disclosed details in Form 8-K dated Oct. 6 and Form 10-Q filed Nov. 3.
Stock Tests Key Technical Support
MSTR Price Action (Source: TradingView)
Shares of Strategy Inc. have dropped below the multi-month ascending trendline that supported rebounds since January.
Price now trades beneath the 20, 50, 100, and 200-day EMAs, confirming a short-term downtrend.
The rejection near $350 marked a lower high, and sellers defended that zone for several weeks.
With the break under $260, the chart now points toward the next demand region near $225.
Bulls need a move above $300 to shift sentiment and trigger short covering.
Momentum remains weak while the stock trades below the EMA cluster.
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