Why is STRE Strategy Support in Europe Lacking - The Answer Lies in the Market

In November, Strategy launched the Stream (STRE), a perpetual preferred stock denominated in euros and expected to be the European counterpart of their successful Stretch (STRC) product. The initial target was EUR100 ($115) per share with a 10% annual dividend. However, while this benefit looks attractive on paper, the market reality is different – STRE has struggled to attract investor interest and continues to lack momentum. According to Treasury founder Khing Oei’s analysis, the problem is not simply demand but structural obstacles hindering the product’s growth.

The Product Looks Good but Lacks Accessibility

STRE is one of the innovative financial instruments presented by Strategy, but accessibility has become a major barrier. It is listed on Luxembourg’s Euro MTF – a platform that lacks user-friendly distribution channels for typical investors. Interactive Brokers, one of the largest global brokerage platforms, does not offer STRE trading. Many retail-focused platforms also do not support this instrument, meaning the pool of investors who can easily access it is limited.

This directly impacts interest and adoption. No matter how large the European market is as a target, if there is no convenient way to buy, investors will simply look for alternatives. This is the fundamental mismatch – a good product placed in a place where it’s hard to reach.

Market Issue: Lack of Clear Pricing and Market Data

Furthermore, there is a lack of transparent and reliable market pricing information. On TradingView, STRE shows a market capitalization figure of $39 billion but only 1.3k in volume – a major red flag indicating extremely low liquidity. There is no clear price history or dependable trading data to help investors assess the asset’s true performance.

The lack of visibility across different platforms compounds the problem. Investors wanting to analyze before buying are hindered by fragmented and unclear market information. Even with a 10% dividend yield in theory, confidence is lacking if pricing and market conditions are not transparent.

How Can Structural Barriers Be Addressed?

The solution is not just a marketing push but an overhaul of infrastructure. Khing Oei has suggested relisting in more favorable locations, such as the Netherlands, where market infrastructure is deeper, bid-ask spreads are narrower, and retail traders have better access. The Dutch financial ecosystem offers better distribution networks and more established trading infrastructure compared to the current setup.

Such changes would not only improve accessibility but also bring higher market depth and increased trading volume. This is the critical element missing in the current arrangement – insufficient infrastructure to support an interested investor base.

The Future: Will Strategy Shift Focus to Europe?

The strategic question now is – will Strategy prioritize strengthening the European market through infrastructure improvements? Or will they continue focusing on the US market where their other preferred equity products are thriving? Executive Chairman Michael Saylor has previously downplayed expansion into emerging markets like Japan, but Europe already has an established investor base and regulatory framework.

This decision is crucial not only for STRE but for Strategy’s entire European strategy. If they are serious about this market, they need to address the current infrastructure gaps. Otherwise, Europe might be neglected, and they could focus on the more lucrative US market where they have reported strong demand for preferred equity.

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