Strategy to pursue euro-denominated stock offering…to secure funds for additional Bitcoin purchases
Summary
- Strategy said it will pursue a euro-denominated listed stock offering to secure funds for additional Bitcoin purchases.
- Funds raised through the offering are planned to be used for additional Bitcoin (BTC) purchases and general operating funds.
- The newly issued shares carry a cumulative annual 10% dividend and will be sold only to qualified investors in the EU and the UK.
Strategy, the cryptocurrency investment firm led by Michael Saylor, is pursuing a euro-denominated listed share offering (IPO) to raise funds for Bitcoin purchases.
On the 3rd (local time), Cointelegraph reported that Strategy plans to issue 3,500,000 euro-denominated perpetual shares under the ticker 'STRE'. Barclays, Morgan Stanley, Moelis, and TD Securities will participate as joint book-running managers in the euro share issuance.
Strategy intends to use the proceeds from the offering to purchase additional Bitcoin (BTC) and for general operating funds. The newly issued shares carry a cumulative annual 10% dividend based on a par value of 100 euros (about $115), payable quarterly starting December 31.
The STRE shares will be sold only to 'qualified investors' in the European Union (EU) and the United Kingdom. Strategy specified that it will not offer the shares to general investors.
Saylor adopted a business model in mid-2020 of continuously purchasing Bitcoin by raising capital through share issuance. Through this, Strategy has grown into the publicly listed company holding the largest amount of Bitcoin. The company currently holds a total of 641,205 BTC, and the purchase amount is approximately $47,490,000,000. Strategy said it purchased an additional 397 bitcoins earlier this month.
Son Min
sonmin@bloomingbit.ioHello I’m Son Min, a journalist at BloomingBit
