Less than a week after Strategy (MSTR) reported third-quarter results and hinted at the launch of international perpetual preferred stock, the company launched Stream (STRE), a euro-denominated perpetual preferred security, the company announced Monday.
STRE will be issued at a price of 100 euros ($115) per share with an annual dividend of 10% payable quarterly in cash. STRE targets professional and institutional investors in the European Economic Area (EEA) and will be listed on Euro MTF Luxembourg, cleared by Euroclear and Clearstream.
If dividends are not paid, they are compounded quarterly, with the rate increasing by 100 basis points per period to a maximum of 18%. If Strategy does not declare a dividend, it must issue a notice of deferral and use commercially reasonable efforts over a 60-day period to raise funds through the sale of junior securities such as STRK or STRD to cover the deferred payments.
STRE ranks higher than common stock STRK, STRD and MSTR, but ranks lower than STRF, STRC and debt. It is not redeemable except in adverse tax circumstances or if less than 25% of the shares remain outstanding, and investors can demand redemption following a “fundamental change.” The liquidation preference adjusts daily to the greater of the declared amount of 100 euros, the previous day’s stock price or the 10-day average, linking its value to trading performance.
Profits will support Bitcoin acquisitions and general objects of the company, in addition to the absence of voting rights.
