Analysis: Due to limited trading venues and market structure, the STRE European Perpetual Preferred Shares Strategy has encountered a setback.
BlockBeats News, January 24th. According to CoinDesk, in November last year, Strategy launched the first non-U.S. market perpetual preferred stock Stream (STRE) in Europe, attempting to replicate its high-yield preferred stock model in the U.S. The product has a face value of 100 euros with a 10% annualized dividend, but was ultimately issued at a discount of only 80 euros, raising approximately $715 million. The market response post-listing has been consistently lackluster.
Analysts believe that the failure of STRE has several structural reasons. Firstly, STRE is listed on the Luxembourg Euro MTF, but large brokerage platforms, including Interactive Brokers, and many retail-facing platforms do not support trading, making it difficult for the product to be accessed by retail and institutional investors. Secondly, the product lacks transparent historical pricing and reliable market data. Currently, Strategy has not released more information on the follow-up arrangements for STRE. The market is watching whether they will continue to deepen their presence and expand in Europe or focus on the U.S. market where they have already launched four perpetual preferred stock products.
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