Strategy, the holding company led by Michael Saylor, has filed for an initial public offering (IPO) of euro-denominated shares (STRE). This move aims to raise fresh capital to fund further Bitcoin acquisitions.
According to Monday's announcement, Strategy plans to offer 3.5 million shares under the ticker STRE. The net proceeds from these sales will be allocated towards purchasing Bitcoin and for general business purposes. The stock provides a 10% yearly cumulative dividend on a stated amount of 100 euros, paid quarterly starting on December 31.
The STRE share offering is exclusively for "qualified investors" in the EU and UK and will not be made available to any retail investors in those regions.
Strategy's business model, implemented by founder Michael Saylor in mid-2020, has enabled the company to issue shares and raise capital to accumulate Bitcoin. This strategy has positioned Strategy as the largest holder of Bitcoin among publicly traded companies.
Currently, Strategy holds 641,205 BTC, acquired for a total of $47.49 billion, including 397 Bitcoin recently purchased in early November. This model has also inspired numerous copycat companies to adopt similar strategies for stockpiling Bitcoin and other cryptocurrencies like Ether.
Michael Saylor has affirmed that the company is unlikely to alter its business model. He stated that the primary focus is to sell digital credit, improve the balance sheet, buy Bitcoin, and communicate this strategy to credit and equity investors. Addressing analyst concerns about potential market saturation and the need for acquisitions, Saylor indicated that Strategy has no plans to pursue mergers or acquisitions, even if they might appear accretive.
Book-running managers for this latest share offering include Barclays, Morgan Stanley, Moelis, and TD Securities.