Shares of Strategy (formerly MicroStrategy) fell again after the company announced its first public offering of STRE Series A preferred shares. The move aims to raise additional funds for Bitcoin purchases and strengthen corporate liquidity.
While the offering is designed to support long-term growth, investors reacted cautiously, sending MSTR stock lower even after market close.
Strategy Launches STRE Preferred Stock Offering
The company announced a public offering of 3.5 million Series A STRE preferred shares with a 10% dividend rate.
Proceeds from the sale will be used for general corporate purposes, including acquiring more Bitcoin.
Major financial institutions such as Barclays, Morgan Stanley, Moelis & Co., TD Securities, and others are managing the offering.
Dividends on STRE shares will be paid in cash starting December 31, and if not paid on time, they will accrue at a rate of 10% + 1% annually.
Over the next 60 days, Strategy also plans to sell common shares of STRK, STRD, and MSTR to cover any deferred dividend obligations.
MSTR Stock Declines Amid Market Nervousness
MSTR shares closed at $264.68 on Monday, down 1.8%, and dropped another 2.6% after hours following the STRE announcement.
Over the past month, the stock has fallen more than 26%, bringing its year-to-date return down to 8.6%.
According to Yahoo Finance, MSTR traded between $259.85 and $270.36 with below-average trading volume.
Still, investment bank Canaccord Genuity maintains a âBuyâ rating and raised its price target to $474, citing the companyâs strong fundamentals.
Strategy reported Q3 2025 net income of $2.8 billion and unrealized Bitcoin gains of $3.9 billion, which continue to make it one of the most Bitcoin-exposed companies in the public market.
Unrealized Bitcoin Gains Fall Below $20 Billion
Strategy continues its aggressive accumulation strategy.
The company recently purchased an additional 397 BTC for $45.6 million at an average price of $114,771 per Bitcoin, increasing its total holdings to 641,205 BTC, acquired for a combined $47.49 billion.
According to Michael Saylor, founder and executive chairman, Strategyâs year-to-date Bitcoin return remains at 26.1%, even though the recent correction pushed unrealized gains below $20 billion.
The companyâs Bitcoin net asset value (NAV) currently stands at $68.06 billion, down from over $30 billion in unrealized profits just a few months ago.
Bitcoin Weakness Weighs on Corporate Crypto Holdings
The renewed drop in Bitcoinâs price below $105,000 has weakened investor confidence in corporate Bitcoin strategies and so-called âBitcoin bonds.â
Accumulation activity has slowed, as traders remain cautious amid a volatile macro and crypto environment.
At the time of writing, BTC is trading at $104,530, down 3% in 24 hours, with a daily range between $104,178 and $108,286.
Summary
The new STRE preferred stock offering highlights Strategyâs continued conviction in Bitcoin as a core corporate asset, but also exposes short-term investor concerns.
While the move will help raise capital for further BTC purchases, it adds short-term selling pressure on MSTR shares.
Despite the market downturn, Strategy remains the largest institutional holder of Bitcoin in the world, staying committed to its long-term vision of digital asset integration.
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