We advised the underwriters

Davis Polk advised the underwriters in connection with the €620 million SEC-registered offering of 7,750,000 shares of 10% Series A perpetual stream preferred stock by Strategy Inc (formerly MicroStrategy Incorporated). Strategy intends to use the net proceeds from the offering for general corporate purposes, including the acquisition of bitcoin and for working capital. Strategy intends to list the preferred stock on the Official List of the Luxembourg Stock Exchange and the Euro MTF market of the Luxembourg Stock Exchange under the symbol “STRE.”

Strategy is the world’s first and largest bitcoin treasury company. The company has adopted bitcoin as its primary treasury reserve asset. By using proceeds from equity and debt financings, as well as cash flows from its operations, it strategically accumulates bitcoin and advocates for its role as digital capital. The treasury strategy is designed to provide investors varying degrees of economic exposure to bitcoin by offering a range of securities, including equity and fixed-income instruments.

The Davis Polk corporate team included partners Daniel P. Gibbons, Joseph A. Hall and Reuven B. Young, counsel Mark Chalmers and associates José Miguel Fernández Mejía, Yuchen Liu and Eric Spiniello. The tax team included partner Lucy W. Farr and associates Yueyu Yang and Georgianna Eck. Members of the Davis Polk team are based in the New York and London offices.

 

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