European STRE is shunned by Strategy's global expansion strategy

As Strategy makes its ambitious foray into the European market, new financial instruments face a cold market reaction. STRE, a perpetual preferred stock for Europe, introduced with an attractive 10% annual dividend, has shown a surprising turn in that it has been shunned by investors contrary to initial expectations. Behind this phenomenon seems to be deeply rooted in structural challenges, not just changes in the market environment.

Background of Access Barriers and Price Discovery Opacity Driving Investors Away

The direct cause of STRE’s struggle with market penetration lies in the lack of a well-developed trading environment. Listed on the Luxembourg-based Euro MTF, this product is not handled by Interactive Brokers, one of the world’s leading brokerage firms. In addition, many retail investment platforms do not support trading this product, which limits access for the average investor.

According to Khing Oei, founder and CEO of Treasury, another serious challenge is the ambiguity of price discovery mechanisms. The limited disclosure on major market analysis platforms like TradingView makes it difficult for investors to properly assess liquidity and performance. In fact, TradingView’s trading data shows that trading volume is only at a very low level of 1,300 compared to a market capitalization of $39 billion, highlighting a structure that makes it difficult for market participants to grasp the true scale of demand.

The Gap Between Expectations and Reality, Why Recruitment Rates Are Slumping

STRE was theoretically supposed to function as an attractive financial product that offered high yields. Although it was scheduled to be issued at a face value of EUR100 (approximately $115), it was ultimately issued at a 20% discount of EUR80 per share, raising a total of EUR 715 million.

This downturn is even more pronounced when compared to other perpetual preferred equity products that Strategy deploys. In particular, the difference in adoption with products such as Stretch in the U.S. market shows a seriousness that cannot be explained by a mere difference in market size. The lack of transparent communication from the company regarding product details since its issuance also appears to be a factor undermining market confidence.

Market Structural Challenges Posed by the Liquidity Crisis

Behind STRE’s shunning is a more essential market function failure. The intertwining of factors such as widening limited bid-ask spreads, shallow market making, and information asymmetry has left investors facing a challenging environment for risk management.

On the other hand, different movements have been observed in the digital asset market during the same period. While the XRP market continues to be volatile, with a 24-hour decline of 5.87% as of January 2026, U.S.-listed spot XRP exchange-traded funds (ETFs) continue to see net inflows of $91.72 million per month, and institutional interest in regulated products remains high.

European Market Potential and Inadequate Access Environment

Khing Oei recognizes that the entire European Economic Area holds sufficient market size. However, the current trading infrastructure has not been able to fully exploit its potential. Western financial markets, particularly in the Netherlands, offer stronger distribution channels, deep market making, competitive bid-ask spreads, and the ability to provide access to a broader retail tier.

This environment can be an essential condition for promoting the expansion of adoption of new financial products.

The path to breaking the status quo of being shunned

In order to break free from the situation where STRE is shunned in the future, relisting on alternative exchanges has emerged as a viable option. The financial infrastructure in the Netherlands can provide a more convenient distribution environment, which could directly lead to increased access for retail investors.

However, it remains unclear where the strategic priorities of Strategy management, particularly Executive Chairman Michael Saylor, lie there. He has been cautious about expanding into emerging markets like Japan in the past, and it is unclear whether he will position Europe as a growth opportunity or continue to use the US market as the main battlefield. It will also be interesting to see how STRE’s position will change among the four different perpetual preferred equity product lineups currently held by Strategy.

How to reevaluate and rebuild European products that are shunned in the context of global capital raising strategies? Strategy’s next move is about to capture the interest of the entire market.