Strategy Inc (Nasdaq: STRF/STRC/STRK/STRD/MSTR) is making a splash in the crypto-finance space with plans to launch an initial public offering of 3.5 million shares of 10% Series A Perpetual Stream Preferred Stock (STRE Stock). The IPO, registered under the U.S. Securities Act of 1933, aims to bolster corporate coffers for general purposes—including acquiring bitcoin—and support ongoing working capital needs.

The STRE Stock offers a 10% annual cumulative dividend on a €100 stated value per share, paid quarterly in arrears. If dividends are not declared on schedule, a compounded dividend mechanism kicks in, starting at 11% and potentially rising to 18% per year, providing strong protection for investors seeking yield in volatile markets.

Key Features and Investor Protections

• Quarterly dividends: Paid in cash on March 31, June 30, September 30, and December 31, beginning December 31, 2025.
• Compounded dividends: Unpaid dividends accrue additional interest quarterly, increasing by 100 basis points per quarter until fully paid.
• Redemption rights: Strategy may redeem all STRE Stock under certain conditions, including if shares fall below 25% of initial issuance or if specific tax events occur.
• Fundamental change repurchase: Investors can require Strategy to buy back shares at stated value plus accumulated dividends if major corporate events occur.
• Liquidation preference: Initially €100 per share, adjusted daily to reflect the greater of stated value, recent trading price, or 10-day average trading price.

The offering is being managed by a high-profile syndicate, including Barclays, Morgan Stanley, Moelis & Co., SG Americas, TD Securities, Canaccord Genuity, and StoneX Financial. Interested investors can access the preliminary prospectus via the SEC website or directly through the managing banks.

Regulatory Scope and Market Restrictions

The IPO targets qualified investors only, explicitly excluding retail investors in both the European Economic Area (EEA) and the U.K. under local Prospectus and PRIIPs regulations. The product is designed for eligible counterparties and professional clients, reflecting the structured nature and risk profile of the offering.

This IPO marks a notable move for Strategy Inc, blending traditional preferred stock structures with crypto-oriented investment goals, highlighting how the financial sector is increasingly bridging conventional markets with digital assets. For institutional investors, the STRE Stock offers high-yield potential, structured dividend protections, and strategic exposure to bitcoin, all wrapped in a sophisticated securities vehicle.