Michael Saylor continues his obsession with bitcoin. His company Strategy has just filed for an IPO of a euro-denominated stock, specifically designed to raise funds and acquire even more BTC. Will this initiative be enough to revive a purchasing dynamic that is showing signs of running out of steam?
In brief
- Strategy is launching a Euro Share Issue (STRE) restricted to qualified investors in the EU and UK.
- The company plans to sell 3.5 million shares with a 10% annual dividend to fund the purchase of bitcoins.
- Strategy already holds 641,205 BTC for an acquisition value of $47.49 billion.
Strategy wants to strengthen its Bitcoin positions via a raising in euros
Strategy takes a new step in its insatiable quest for Bitcoin. Michael Saylor's company filed an application on Monday to issue 3.5 million perpetual shares under the symbol STRE, each valued at 100 euros ($115).
These securities will offer a cumulative dividend of 10% paid quarterly starting December 31. Barclays, Morgan Stanley, Moelis and TD Securities are leading this ambitious operation.
This initiative marks a strategic turning point. Strategy now targets European institutional investors, deliberately excluding individuals. The company is clearly seeking to diversify its sources of financing beyond the American market, where its business model is beginning to raise questions.
Michael Saylor remains adamant on his strategy. During a conference call last Thursday, he clearly stated that “ the goal is to sell digital credit, improve the balance sheet, buy bitcoin and communicate this to credit and equity investors “. There is no question of merging with competitors or changing course, even if it might seem “potentially advantageous”.
Conflicting signals that fuel doubts
The timing is important. Strategy just acquired 397 BTC in early November for around $45.6 million, bringing its total hoard to 641,205 bitcoins. A portfolio that has posted a return of 26.1% since January. However, these figures mask a more nuanced reality.
Strategy purchases collapsed in October with only 778 BTC acquired, compared to 3,526 in September. This 78% drop contrasts sharply with the pace of accumulation in the first half, when the company purchased more than 20,000 BTC monthly.
This sudden slowdown destabilizes the crypto community, which scrutinized Saylor's every move as a barometer of institutional confidence.
Analysts are divided. Some see it as a simple consolidation phase after an intense accumulation. Others fear a defensive positioning in the face of a Bitcoin market which is struggling to regain altitude.
The rejection of Strategy by the S&P 500 last September reinforced these concerns. JPMorgan believes that this refusal constitutes a “hard blow for crypto treasuries”, suggesting that the model of indirect exposure to bitcoin could have “reached its limits”.
A double-edged strategy
Issuing shares in euros represents a bold bet. Strategy is attempting to expand its investor base while maintaining its bitcoin accumulation model. But the proliferation of companies imitating this approach could dilute its competitive advantage. Several analysts fear market saturation and forced buyouts between competitors to survive.
Saylor brushes aside these concerns. He categorically rejects any merger-acquisition operation, preferring to stay the course on his original strategy. This European IPO tests the strength of this conviction.
If European institutional investors respond, Strategy will consolidate its position as the undisputed leader in bitcoin treasuries. Otherwise, questions about the long-term viability of this model will only grow.
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