Europe’s First Bitcoin-Backed Stock Pays 10%: Why Did Nearly Half Go Unsold?

Sweden’s BTC AB listed Europe’s first Bitcoin-backed preferred stock on Monday. The shares, called BTC PREF, trade on the Spotlight Stock Market and pay a fixed 10% yearly dividend that lands in investors’ accounts every month.

The idea copies MicroStrategy’s STRC in the US. Investors get steady income, and the company uses their cash to buy more Bitcoin (BTC).

How the 10% Bitcoin-Backed Preferred Stock Works

BTC AB is a small Stockholm company that does one thing. It buys and holds bitcoin. In June, the firm announced a share sale of 195,078 preference shares at SEK 120 each.

Each share pays SEK 12 per year, split into monthly payments. That equals a 10% yearly return on the sale price. A full sale would have raised SEK 23.4 million.

However, buyers only took about 52% of the offer. That brought in roughly SEK 12.2 million, just over half the target.

Timing offers one explanation. The sale ran through late June, while Bitcoin slid and MicroStrategy’s own preferred shares sank below their $100 face value.

The money will buy more bitcoin and build a cash buffer for the dividend. The company’s treasury already holds roughly 172 BTC, worth about $11 million today.

Can Europe Copy MicroStrategy’s STRC Success?

Strategy runs the same playbook at giant scale in the US. Its STRC preferred stock is worth $10.5 billion and funds its Bitcoin buying.

STRC started with a 9% rate and now pays 12%. Even so, it trades near $85, below the company’s $100 STRC target.

Still, buyers keep showing up. Over half of holders bought below par during June’s crash. One credit veteran even says markets are mispricing STRC by 13%.

The timing is tough, though. Bitcoin trades near $65,426, down almost 45% in a year. A long slump would strain a payout that never adjusts, unlike STRC’s flexible rate.

BTC AB has hired Pareto Securities to keep the shares easy to trade from day one. The next few weeks will show whether Europe really wants Bitcoin income in stock form.

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