Strategy (formerly MicroStrategy), a prominent player in the corporate bitcoin accumulation race, today announced its plan to issue and sell up to $2.1 billion worth of its 10.00% Series A Perpetual Strife Preferred Stock (STRF) through an “at-the-market” (ATM) program. This strategic move is intended to fuel the company’s general corporate purposes, with a significant focus on further acquiring bitcoin.
The company stated on Thursday that it will sell the STRF shares gradually and strategically, considering market price and trading volume at the time of each sale. This approach may include various transaction types, such as negotiated transactions or block trades. Proceeds from the offering will be allocated towards general corporate needs and working capital, alongside the continued expansion of its bitcoin treasury.
This announcement follows Strategy’s recent disclosure on Monday that it acquired an additional 7,390 BTC for approximately $764.9 million between May 12 and May 18, at an average price of $103,498 per bitcoin. These purchases were funded through the sale of its Class A common stock (MSTR) and perpetual strike preferred stock (STRK).
With these latest acquisitions, Strategy now holds a staggering total of 576,230 BTC, valued at over $64 billion. This impressive holding was acquired at an average price of $69,726 per bitcoin, costing the company around $40.2 billion, including fees and expenses. This translates to a substantial paper gain of approximately $23.8 billion for the company. Notably, Strategy’s bitcoin stash represents more than 2.7% of bitcoin’s total 21 million supply.
The issuance of STRF, alongside its existing STRK perpetual preferred stocks, is part of Strategy’s ambitious “42/42” plan. This updated strategy targets a total capital raise of $84 billion in equity offerings and convertible notes for bitcoin acquisitions through 2027, an increase from its initial “$42 billion, 21/21” plan, where the equity side ATM program was recently fully utilized.
