Strategy's preferred stock STRE significantly underperforms expectations in the European market

Strategy’s euro-denominated perpetual preferred stock STRE (Stream), launched in November 2025, was an ambitious attempt by the company to diversify capital raising in the European region. Although this preferred stock was designed as an attractive financial product in theory, market reactions have been significantly different from expectations. The company achieved its fundraising target of €715 million, but the stock was issued at €80 per share, a 20% discount from the initially planned €100 per share, and the stock has continued to struggle to gain traction in the market.

Concept and Market Performance of Euro-Denominated Preferred Stock STRE

STRE is positioned as the European version of Strategy’s high-yield preferred stock Stretch, with a designed annual dividend rate of 10%. At first glance, it appears to be a preferred stock product with sufficient appeal for investors. However, since issuance, trading volume on TradingView has been limited to just 1,300, and it has failed to garner market support. Underlying this phenomenon are structural constraints within the financial infrastructure.

Two Market Challenges Hindering the Adoption of Preferred Stocks

Khing Oei, founder and CEO of Treasury, a Bitcoin treasury company based in Amsterdam, points out the main reasons why STRE adoption has been slow.

First, there is an accessibility issue. STRE is listed on the Luxembourg Euro MTF, but this exchange lacks convenience for individual investors. Even major global securities firms like Interactive Brokers do not handle this preferred stock, and most retail platforms are similarly unresponsive.

Second, there is a lack of transparency in price information. Data platforms like TradingView provide limited information on STRE, making it difficult for investors to accurately assess liquidity and performance.

Proposal to Improve Preferred Stock Liquidity Through Relocation to the Dutch Exchange

Oei suggests relisting STRE on an alternative exchange. In particular, the Dutch financial and trading infrastructure can offer broader distribution channels, deeper market making, narrower bid-ask spreads, and extensive access for retail investors. If these conditions are met, the adoption of preferred stocks could be promoted.

Meanwhile, Chairman Michael Saylor has previously shown caution regarding expansion into emerging markets like Japan. It remains uncertain whether Strategy will refocus on the European market as a growth opportunity or continue to concentrate on the US market. Currently, the company offers four perpetual preferred stock products mainly in the US, and the priority of global expansion remains a key management decision.