MSTR Stock Slides Toward Seven-Month Low After Strategy Sets €80 Preferred Stock Price

Shares of Strategy (MSTR) were on track to hit a seven-month low in pre-market trade on Friday after the company announced that its new euro-denominated preferred stock would be priced at €80 per share.

Strategy’s stock fell as much as 4.7% in morning trade amid weakness in the cryptocurrency market, with Bitcoin (BTC) testing the $100,000-mark. It was the top trending ticker on Stocktwits at the time of writing. Retail sentiment around the Bitcoin proxy on the platform remained in the ‘bullish’ zone over the past day, with chatter at ‘high’ levels.

Preferred Stock Offering Details

Strategy announced the new international perpetual preferred stock on Monday after Executive Chairman Michael Saylor hinted that the company may take its Bitcoin-backed ‘credit factory’ global during the third-quarter (Q3) earnings call. 

The 10% Series A Perpetual Stream Preferred Stock (STRE) is non-voting and will be listed on the Euro MTF Luxembourg. Proceeds from the offering are intended for Bitcoin acquisitions and working capital – marking Strategy’s effort to extend its Bitcoin-linked financing into European markets, as Saylor had indicated.

The offering includes 7.75 million shares. Based on the offering price, Strategy expects gross proceeds of roughly €620 million ($715 million), with net proceeds after underwriting discounts and estimated expenses of approximately €608.8 million ($702 million).

The offering includes 7.75 million shares. Based on the €80 price, Strategy expects gross proceeds of roughly €620 million ($715 million), with net proceeds after underwriting discounts and estimated expenses of approximately €608.8 million ($702 million).

Meanwhile, weakness in the cryptocurrency market and a volatile Bitcoin have also been weighing the stock down. Bitcoin’s price has fallen 2.6% in the last 24 hours – dipping below the $100,000 mark for the second time this week. On Stocktwits, retail sentiment around the apex cryptocurrency fell to ‘neutral’ from ‘bullish’ over the past day, even as chatter remained at ‘high’ levels.

(Exchange rate: €1 = $1.16)

Read also: XRP, Bitcoin, Ethereum Extend Losses Despite ETF Boost But Dogecoin Defies The Drop

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