Strategy launches an IPO in euros to fund the purchase of Bitcoin

Michael Saylor continues his obsession with bitcoin. His company Strategy has just filed a request for an IPO of a share denominated in euros, specially designed to raise funds and acquire even more BTC. Will this initiative be enough to revive a buying momentum that is showing signs of weakening?

Strategy wants to strengthen its Bitcoin positions through a euro fundraising

Strategy takes a new step in its insatiable quest for Bitcoin. Michael Saylor’s company filed on Monday a request to issue 3.5 million perpetual shares under the symbol STRE, each valued at 100 euros (115 dollars).

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 retail investors. The company is clearly looking to diversify its funding sources beyond the US market, where its business model is starting to raise questions.

Michael Saylor remains steadfast 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”.

Contradictory signals fueling doubts

The timing is striking. Strategy just acquired 397 BTC at the beginning of November for about 45.6 million dollars, bringing its total treasury to 641,205 bitcoins. A portfolio with a return of 26.1% since January. Yet, these figures mask a more nuanced reality.

Strategy’s purchases collapsed in October with only 778 BTC acquired, compared to 3,526 in September. This 78% drop contrasts sharply with the accumulation pace of the first half of the year, when the company was buying more than 20,000 BTC monthly. 

This sharp slowdown unsettles the crypto community, which viewed each of Saylor’s moves as a barometer of institutional confidence.

Analysts are divided. Some see it as a simple consolidation phase after intense accumulation. Others fear a defensive positioning in the face of a Bitcoin market struggling to regain altitude. 

Strategy’s rejection by the S&P 500 last September intensified these concerns. JPMorgan considers this refusal a “hard blow for crypto treasuries,” suggesting that the indirect bitcoin exposure model might have “reached its limits.”

A double-edged strategy

The euro-denominated stock issuance represents a bold gamble. Strategy is trying to broaden its investor base while maintaining its bitcoin accumulation model. But the multiplication of companies imitating this approach could dilute its competitive edge. Several analysts fear market saturation and forced buybacks among competitors to survive.

Saylor dismisses these concerns. He categorically rejects any merger or acquisition moves, preferring to stay the course on his original strategy. This European IPO tests the strength of this conviction. 

If European institutional investors respond favorably, Strategy will consolidate its position as the undisputed leader of bitcoin treasuries. Otherwise, questions about the long-term viability of this model will only intensify.