Strategy (MSTR) Introduces Euro-Denominated Stream Preferred Stock Following Q3 Earnings

Less than a week after the Strategy (MSTR) reported Q3 results and hinted at launching an international perpetual preferred stock, the company brought Stream (STRE) to the market, a euro-denominated perpetual preferred security, the company said on Monday.

STRE will be issued at 100 euros ($115) per share with an annual dividend of 10% payable quarterly in cash, STRE targets professional and institutional investors in the European Economic Area (EEA) and will be listed on Euro MTF Luxembourg, clearing through Euroclear and Clearstream.

If dividends are not paid, compounded quarterly, with the rate increasing by 100 basis points per period up to a maximum of 18%. If the Strategy fails to declare a dividend, it must issue a Notice of Deferral and use reasonable commercial efforts within more than 60 days to raise funds through the sale of junior securities such as STRK or STRD to cover the deferred payments.

STRE class senior to STRK, STRD and MSTR ordinary shares but junior to STRF, STRC and debt. It is not called, except in adverse fiscal circumstances or if less than 25% of the shares remain outstanding, and investors may request recovery after a “fundamental change”. The liquidation preference adjusts every day to the greater of the amount of 100 euros declared, the market price of the day before, or the average of 10 days, linking its value to the business performance.

The proceeds will support bitcoin BTC$103,737.28 acquisitions and general corporate purposes, in addition to no voting rights.