STRE is nothing like what Michael Saylor promised on Thursday

Strategy (formerly MicroStrategy) has announced the launch of Stream (STRE), a new Euro-denominated security, despite Michael Saylor repeatedly promising a new version of its existing security STRC geared toward foreign currency investors.

STRC is Strategy’s high-yield, quasi-pegged preferred stock that trades near a $100 peg and pays tax-deferred, monthly, return of capital (ROC) dividends.

Its annualized dividend is currently 10.5% and fluctuates to try to keep STRC trading near $100.

To the contrary, unlike the fiat-stable retirement breakthrough the company has been promising, Strategy doesn’t intend STRE to maintain any price peg.

Instead, and by Saylor’s own admission, STRE is most similar to STRF — just denominated in euros instead of dollars.

Moreover, in asking for less than €350 million with this initial public offering, STRE is far short of Strategy’s multi-trillion dollar breakthrough that Saylor hopes to serve every accredited investor in the world.

STRE: nothing like a high-yield bank account

On Thursday’s third quarter earnings call, Saylor and his CEO Phong Le spent inordinate amounts of time broadcasting their plans for foreign currency-denominated securities similar to STRC.

Saylor claimed a goal of 1 billion buyers for STRC or its upcoming, foreign currency counterparts.

He has also repeatedly likened STRC to a high-yield savings product, claiming its tax-equivalent yield is 16.5%.

Unfortunately, the fluctuating price and fixed dividend rate of STRE won’t make any progress toward the price-pegged, floating-rate goal of rolling out STRC counterparts for foreign currency investors.