How Saylor and Strategy plan to kickstart Bitcoin buying internationally
Summary
Strategy Inc., led by Michael Saylor, has slowed its Bitcoin purchases recently, citing the asset class maturing. However, the firm is now activating new financing channels to reignite accumulation. This includes launching the euro-denominated Series A Perpetual Stream Preferred (STRE) in Luxembourg, offering a competitive 10% annual dividend, and successfully stabilizing its US-listed Variable-Rate Series A Perpetual Stretch Preferred (STRC) at its $100 par value by raising its coupon to 10.5%.
The STRC hitting par allows Strategy to issue new shares through its ATM program to buy Bitcoin, tapping into a potential $33 trillion market of yield-chasing capital. The STRE offers a high yield compared to European corporate bonds, attracting international capital for general corporate purposes, including Bitcoin acquisition.
These twin preferred stock offerings are expected to create a two-continent funding loop, potentially leading to renewed aggressive Bitcoin buying, which historically supported market sentiment. Furthermore, these highly liquid preferred shares deepen Bitcoin's integration into traditional finance by channeling conventional income-seeking capital into exposure to Bitcoin's balance sheet value.
(Source:CryptoSlate)