Strategy, formerly known as MicroStrategy, has announced its plans to raise up to $21 billion in fresh capital to buy more of the number one cryptocurrency. The company intends to sell a special type of stock called perpetual strike preferred stock for Bitcoin purchases.
Strategy’s $21 Billion Stock-Sale Plan
According to a prospectus filing with the U.S. Securities and Exchange Commission (SEC), Strategy has entered into a new agreement that would allow it to sell shares of its 8% series A perpetual strike preferred stock, STRK. Proceeds of the sale will mostly be used for buying additional Bitcoin.
As part of the agreement dubbed the “ATM Program”, Strategy will sell STRK shares over time, potentially via at-the-market sales, negotiated transactions, or block trades.
“Strategy intends to use the net proceeds from the ATM program for general corporate purposes, including the acquisition of Bitcoin and for working capital,” the company said in the SEC filing.
The company has gone from mainly selling data analyzing software to securitizing Bitcoin: It acquires and holds the apex crypto, while investors purchase shares of Strategy to gain safe and regulated exposure to BTC without actually handling it.
The new ATM Program marks another offering by Strategy to expand its Bitcoin Treasury position. The company has previously used debt offerings and equity issuances to fund Bitcoin purchases under the leadership of its co-founder and Executive Chairman Michael Saylor, who has long endorsed Bitcoin as a Treasury reserve asset.
Last October, Strategy announced the “21/21 plan”, targeting a total capital raise of $42 billion over three years in equity offerings and fixed-income securities. The goal is to use the raised capital to snatch up more Bitcoin, further solidifying its position as the world’s largest public corporate Bitcoin holder.
Strategy currently holds 499,096 BTC, valued at around $40 billion at BTC’s current price. With an average cost per BTC at $66,357, its position remains healthy, sitting on a 25% unrealized gain despite the crypto market correction.
In December, the Saylor-founded firm started trading as a member of the Nasdaq 100 equity index, joining some of the world’s most valuable companies — such as Apple and Microsoft.
