Strategy Inc. (NASDAQ:MSTR) announced an increase of a high-yield preferred offering to fund more Bitcoin (CRYPTO: BTC) purchases, but MSTR shares plunged to $230 as traders sold the news.
Strategy Prices €620M Preferred Stock Offering
The company announced it would issue 7.75 million shares of its 10.00% Series A Perpetual Stream Preferred Stock (STRE) at €80 ($92.60) per share.
Settlement is expected on Nov. 13, subject to customary closing conditions.
The sale will raise €620 million ($715 million) before costs, leaving about €609 million ($702 million) in net proceeds after underwriting fees and expenses.
Strategy said it plans to use the funds for general corporate purposes, including further Bitcoin acquisitions and working capital.
The preferred shares carry a 10% annual cumulative cash dividend, payable quarterly beginning Dec. 31, 2025.
If dividends are deferred, unpaid amounts accrue interest at an increasing rate up to 18% per year until settled.
Barclays (NYSE:BCS), Morgan Stanley (NYSE:MS), Moelis & Company (NYSE:MC), and TD Securities, a division of The Toronto–Dominion Bank (NYSE:TD), are among the joint book-running managers.
The offering will not be marketed to retail investors in the European Union or the U.K., in line with regulatory restrictions.
High Yield, But Heavy Selling
MSTR Price Forecast (Source: TradingView)
Despite the high dividend, investors responded by selling MSTR stock aggressively.
Shares dropped through the $250–$260 demand zone that had provided multi-month support.
The breakdown continued into pre-market trading, with prices sliding toward $221.50.
Charts show the move has shifted from a temporary shakeout to a confirmed exit from the symmetrical triangle pattern that shaped price action since early 2025.
MSTR now trades below all key EMAs — turning them into stacked resistance levels.
This configuration signals that institutional inflows have paused and that rallies are being sold rather than accumulated.
The stock's weakness mirrors the ongoing pullback in Bitcoin, which recently lost key support near $100,000 today.
Because of its leveraged exposure and treasury holdings, MSTR often amplifies Bitcoin's directional swings.
Technical Levels To Watch for MSTR
Immediate support lies near $220–$225, followed by a major downside target at $210–$215.
A failure to hold that range could expose the $190 pivot from earlier this year.
On the upside, recovery requires a close above $260, which would place price back within the prior consolidation zone and above the 20-day EMA.
Volume trends confirm active distribution, while the Parabolic SAR continues to trail above price, keeping momentum in sellers' hands.
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