MSTR Stock Plummets as Euro Preferred Shares Strategy Sparks Investor Panic
MicroStrategy's latest financial maneuver sends shockwaves through the market
The Bitcoin-heavy holding company just unveiled plans for euro-denominated preferred shares - and investors are voting with their sell buttons.
Strategic Shift or Desperation Move?
Michael Saylor's firm continues doubling down on its crypto-first approach, but this European expansion raises eyebrows across traditional finance circles. The timing couldn't be more curious - just as Bitcoin shows renewed strength, MSTR chooses to dilute through preferred shares rather than direct crypto accumulation.
Market Reaction Speaks Volumes
Immediate stock depreciation suggests Wall Street remains skeptical about the company's transformation into a quasi-crypto ETF. Another case of corporate finance trying to outsmart the very market it claims to embrace - because what says 'decentralized future' better than preferred shares in euros?
The real question: Is this strategic diversification or a tell-tale sign that even Bitcoin maximalists need fiat lifeboats?
TLDR
- Strategy announced its first Euro-denominated perpetual preferred stock offering for global institutional investors.
- MSTR stock closed 1.80 percent lower at $264.68 on Monday and fell an additional 2.60 percent after market hours.
- The company will pay regular cumulative dividends on STRE stock starting December 31, 2025.
- Unpaid dividends on STRE stock will compound annually at a rate of 10 percent plus 100 basis points.
- Canaccord Genuity issued a buy rating for MSTR stock with a price target of $474.
Strategy has launched its first Euro-denominated perpetual preferred stock offering for global institutional investors. The company formerly known as MicroStrategy holds the most extensive corporate Bitcoin treasury globally. MSTR stock declined in regular trading and continued to extend losses after market hours following the announcement.
Strategy Launches STRE Preferred Stock Offering
Strategy unveiled the STRE perpetual preferred stock offering targeting European and global institutional investors. Barclays and Morgan Stanley International plc serve as joint book-running managers for the offering. Other managers include Moelis & Company, SG Americas Securities, TD Securities (USA), Canaccord Genuity, and StoneX Financial.
The company will pay regular cumulative dividends on STRE stock in cash starting December 31. Unpaid dividends will compound annually at a rate of 10 percent plus 100 basis points. Strategy commits to selling STRK, STRD, and MSTR class A common stock within 60 days to cover deferred dividends.
The new offering aims to raise capital for additional bitcoin purchases and corporate operations. MSTR stock reacted negatively to the announcement as investors assessed the dilution impact. The company plans to use proceeds primarily for expanding its Bitcoin holdings further.
MSTR Stock Performance and Analyst Outlook
MSTR stock closed Monday at $264.68, down 1.80 percent during regular trading hours. The stock has fallen more than 26 percent over the past month due to Bitcoin price volatility. Year-to-date returns have decreased to 8.61 percent according to Yahoo Finance data.
After market hours, MSTR stock dropped an additional 2.60 percent following the preferred stock announcement. The 24-hour trading range was between $259.85 and $270.36 for the stock. Trading volume remained below average levels on Monday.
Canaccord Genuity issued a buy rating for MSTR stock with a price target of $474. The rating follows Strategy’s strong third-quarter 2025 results and Bitcoin performance. The company reported $2.8 billion in net income and $3.9 billion in unrealized gains from Bitcoin.
Bitcoin Holdings and Market Performance
Strategy recently acquired 397 BTC for $45.6 million at an average price of $114,771 per Bitcoin. The company now holds 641,205 BTC in total Bitcoin reserves across its treasury. CEO Michael Saylor stated the firm spent $47.49 billion to acquire its entire Bitcoin position.
Strategy is offering $STRE (“Stream”), our first ever Euro-Denominated Perpetual Preferred Stock, to European and global institutional investors. $MSTR pic.twitter.com/tCectc2uA2
— Michael Saylor (@saylor) November 3, 2025
The company achieved a Bitcoin yield of 26.1 percent year-to-date, according to Saylor’s announcement. Strategy’s Bitcoin Net Asset Value currently stands at $68.06 billion based on current market prices. Unrealized gains have dropped below $20 billion from $30 billion several months ago.
Bitcoin trades at $104,530, down more than 3 percent in the past 24 hours. The cryptocurrency’s 24-hour range was between $104,178 and $108,286 during the trading period. The price decline has affected investor confidence in Bitcoin treasury strategies and corporate accumulation rates.
