Strategic Company has announced a new initial public offering aimed at enhancing its investments in Bitcoin, reflecting the company's ongoing commitment to consolidating its position as the largest institutional owner of this digital currency.
The company mentioned in a statement issued on November 3 that it will offer 3.5 million preferred shares denominated in euros with an interest rate of 10%, as part of a plan to finance additional acquisitions of Bitcoin.
The shares will be listed under the trading symbol STRE, marking the first time that Strategic has issued a financial instrument denominated in euros, as part of its strategy to attract institutional investors in Europe. Dividends will be paid in cash every three months starting from the end of 2025, subject to the approval of the board of directors, making this offering part of a long-term strategy to increase Bitcoin holdings.
Strategic confirmed that the proceeds from the offering will be used for general corporate purposes, primarily to enhance its investments in Bitcoin and support working capital. This move comes after its announcement of purchasing an additional 397 Bitcoins valued at approximately $45.6 million, raising its total holdings to about 641,205 Bitcoins, with an estimated value exceeding $68 billion according to Bitbo data.
Despite the ongoing expansion in Bitcoin holdings and Michael Saylor's leadership of its accumulation strategy since 2020, the company's stock performance has remained weak, with the share price dropping from over $450 in July to $264 in November.
The announcement of the offering or the increase in Bitcoin acquisitions has not succeeded in changing the downward trend, especially following the negative credit rating (B-) assigned to the company by Standard & Poor's due to liquidity issues and high dividend commitments.
In terms of trading, Strategic shares (NASDAQ: MSTR) decreased by 0.62%, trading near levels of $263.04 after hours in the U.S. stock market.
