Strategy’s $2.1B Stock Program Powers Bitcoin Strategy

Strategy, the company formerly known as MicroStrategy, is doubling down on its bold Bitcoin strategy with a fresh plan to raise up to $2.1 billion through a new type of preferred stock.

According to a document filed with the SEC today, Strategy plans to offer its 10.00% Series A Perpetual Strife Preferred Stock (STRF) through an at-the-market (ATM) program.

In contrast to the standard stock offering, this ATM gives Strategy the opportunity to sell new shares in parts, whenever market conditions are in their favor. When it comes to sales, the company can use standard trades, sizable package deals or even make private deals to quickly build up its capital.

STRF Stock Powers Strategy’s Bold Crypto Push

The company plans to use the proceeds from the offering right away. With these funds available, it is planned that the company will pay for general business activities, invest to expand and above all else, follow an aggressive plan to buy more Bitcoin.

The STRF stock doesn’t have an end date, so it can last perpetually. Although the company claims to pay a generous 10% dividend, it doesn’t have to return the money you gave it when you buy preferred shares. Strategy gets access to capital this way, largely without taking on the debt burden found in bank loans.

The new development follows Strategy’s recent purchase of Bitcoin. During May 12 and May 18, the firm bought 7,390 bitcoins for $764.9 million which means the average price was $103,498 per coin. This transaction was made possible by using equity raised in previous offerings of MSTR and STRK preferred shares.

Strategy Now Holds 2.7% of All Bitcoin

As a result of the additional acquisition, Strategy holds 576,230 Bitcoin, worth more than $64 billion at the current price. The company’s digital fortune cost around $40.2 billion to build, while driving a profit of $23.8 billion. Appropriately, the company now owns about 2.7% of existing bitcoins.

The stock rollout is a major step in accomplishing the “42/42” strategy which aims for twice the scale of its earlier “21/21” targets by raising $84 billion by equity and convertible securities through 2027.

Having tapped previous funding resources, the issuance of STRF marks the beginning of a new phase to help Strategy become the corporate world’s top holder of Bitcoin.

Using new tools to target traditional investors and crypto fans, Strategy is creating a new role at the shared junction of tech, finance and digital assets, gradually building toward a hypothetical $100K bitcoin.