Strategy: A New Crypto Winter Raises Risk Around Dividends Of The Junk Preferreds

2025-12-05 06:58:47 ET

Strategy ( MSTR ) faces a dip in its yield and the specter of a crypto winter that could see the Bitcoin ("BTC") treasury company face headwinds on the quarterly coupon payments of its expanding universe of preferreds. MSTR has four USD-denominated preferred shares, and recently issued its first EUR-denominated preferred shares in November. The company would end up selling 7.75 million of the EUR 10.00% Series A perpetual preferreds at 80 EUR per share for net proceeds of around EUR 608.8 million, or $702.2 million . MSTR has built and refined a strategy of issuing USD-denominated preferred shares with a blend of coupons from 8% to 10% to buy BTC. The shift to EUR came on the back of the company's prior statement to expand its capital raising efforts globally. MSTR also has an ongoing common stock at-the-market offering program, with its share count growing year-over-year by 60% during the fiscal 2025 third quarter to 315,393,000....

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