Strategy, formerly known as MicroStrategy, announced that it plans to raise funding by selling up to $2.1 billion of its Class A perpetual preferred stock (STRF) with a yield of 10.00%. The company filed a prospectus with the U.S. Securities and Exchange Commission on May 22, 2025, confirming that the shares will be sold under the At-the-Market (ATM) trading program.
This means that stocks will be sold gradually, whenever the timing and price are right. Sales can occur as regular trades, large block trades, or even privately negotiated deals. The company says it plans to use the funds for general corporate purposes, such as growing its business, covering costs, and most importantly, buying more Bitcoin.
The stock offered for sale is called "perpetual," meaning it does not expire or mature. Investors receive a 10% return, but the company is not obligated to repay the funds like regular loans. The company aims to achieve its goal of using capital markets to finance its Bitcoin purchases.
Meanwhile, the software company recently revealed its purchase of an additional 7,390 Bitcoins between May 12 and May 18. The total cost of this batch was approximately $764.9 million, with an average price paid of $103,498 per Bitcoin. The funds for this purchase came from previous sales of its Class A common stock (MSTR) and another form of preferred stock called STRK. With this latest purchase, Strategy now holds a total of 576,230 Bitcoins, valued at over $64 billion. The company says it has paid approximately $40.2 billion in total, including fees, making its average price $69,726 per coin. This means the company holds about $23.8 billion in paper profits, which equates to 2.7% of total Bitcoin trades.
The new STRF stock program is part of Strategy's bold "42/42" plan. The goal is to raise $84 billion by 2027 through stocks and convertible bonds, which is double its original "21/21" plan. The previous stock sale program has already been exhausted, which is why Strategy is now turning to STRF.