## Strategy Completes Large-Scale Financing: Preferred Shares STRE Raises €620 Million

Strategy announces the successful pricing of its newly issued perpetual preferred shares, which far exceeds expectations. Investor strong subscription enthusiasm has expanded the initial financing target from €350 million to €620 million, fully reflecting market confidence in these preferred shares.

### Details of the issuance terms for preferred shares STRE

Strategy's Series A perpetual preferred shares (STRE) are priced at €80 per share, with an annual fixed dividend rate of 10%. The company plans to issue 77.5 million shares, each with a 10% cumulative annual dividend. According to the plan, STRE will settle and deliver on November 13.

The proceeds from this financing will be used for Strategy's general corporate purposes, including part of the funds allocated to expand its Bitcoin (BTC) asset allocation. Strategy expects to raise gross revenue of $751 million (equivalent to €620 million, after deducting various fees and commissions), calculated at an exchange rate of $1.15/EUR.

### Rights Protection for Holders of Preferred Shares

Holders of STRE are entitled to an annual dividend distribution of 10%, with a face value of €100. If, for certain reasons, dividends are not paid on time, the accumulated dividends will continue to grow until reaching an annualized cap of 18%. All dividends will be paid in cash, but under certain circumstances, dividend payments may be deferred until Strategy issues new subordinate shares such as STRK or MSTR.

Additionally, this preferred share also grants Strategy's board of directors the right to repurchase at any time. When market conditions change substantially, STRE holders can also request a cash buyback, including payment of all unpaid accumulated dividends.

It is worth noting that this issuance is only open to qualified investors within the Eurozone and is not available to retail investors. No prospectus will be prepared for buyers in the Eurozone or the UK; STRE is only offered to professional investors.

### MSTR Stock Price Under Pressure, Mainly Due to BTC Volatility

Strategy's common stock MSTR has recently performed weakly, with the stock price falling to a 52-week low of $237.20. Bitcoin price fluctuations have the most direct impact on MSTR's stock price — when Bitcoin drops to the $100,000 range, MSTR's stock price comes under pressure.

Data shows that the current BTC price is around $91.40K, significantly down from the high at the beginning of the year. This volatility has caused a chain reaction affecting Strategy's stock performance. Nevertheless, Strategy is still trading at a multiple of 1.27 times its mNAV, but this valuation no longer fully reflects market enthusiasm for MSTR.

### Can Strategy’s Long-Term Accumulation Strategy Hedge Short-Term Volatility

The completion of this large-scale financing provides Strategy with ample capital reserves, sufficient to support its continued weekly small-scale BTC accumulation plans. These series of financing actions may alleviate the dilution pressure on MSTR's common stock in the short term.

Historically, Strategy tends to make larger Bitcoin purchases during market rallies. However, in the current market correction cycle, MSTR's common stock has declined significantly from recent highs, and Strategy has not yet experienced a deep bear market test. If Bitcoin continues to decline further, Strategy’s balance sheet relative to circulating shares may present a revaluation opportunity. However, based on Strategy’s past operational habits, the company usually does not actively build positions at the bottom of the cycle.