MicroStrategy, which now operates under the name Strategy (Nasdaq: MSTR; STRK), has announced a new $21 billion at-the-market (ATM) offering to sell shares of its 8.00% Series A Perpetual Strike Preferred Stock.
The proceeds from this offering will be used for general corporate purposes, including additional Bitcoin purchases and working capital requirements.
According to Strategy’s announcement, the perpetual strike preferred stock will be convertible into class A common shares. The company plans to sell these shares gradually, considering market conditions and trading volumes to maximize value.
The stock offering is registered under the Securities Act of 1933 and will be sold through an automatic shelf registration statement filed with the U.S. Securities and Exchange Commission (SEC).
A Continued Push for Bitcoin Accumulation
Strategy has consistently pursued an aggressive Bitcoin investment strategy, using a combination of equity and debt financing to increase its holdings. As of today, the company holds 499,096 BTC, valued at $40.68 billion, with a dollar-cost average of $66,380 per Bitcoin.
At current market prices, Strategy’s latest 13 Bitcoin purchases are down between 10% and 25%, though the company remains confident in its long-term Bitcoin strategy.
The offering aligns with Strategy’s ongoing treasury approach, which treats Bitcoin as a reserve asset. By continuously expanding its holdings, the company aims to capitalize on Bitcoin’s long-term value growth and reinforce its status as the world’s largest publicly traded Bitcoin holder.
Stock Offering Structure and Market Implications
The ATM offering allows Strategy to issue and sell preferred stock at market prices, rather than setting a fixed price. This approach provides flexibility to adjust sales based on market conditions and optimize fundraising efforts.
The perpetual strike preferred stock will pay an 8.00% dividend and is convertible into common shares. This structure is expected to attract institutional investors, given the high-yield nature of the preferred shares combined with potential Bitcoin exposure.
Strategy’s stock issuance method complies with SEC regulations, ensuring that shares are only offered through an official prospectus supplement filed with the Securities and Exchange Commission (SEC) on March 10, 2025.
MicroStrategy’s Strategic Position in Bitcoin and Market Impact
With 499,096 BTC on its balance sheet, Strategy has become a dominant force in corporate Bitcoin adoption. The latest $21 billion stock offering could further solidify its position by allowing the company to purchase additional Bitcoin while maintaining financial flexibility.
Despite short-term price volatility, Strategy’s leadership remains focused on Bitcoin as a long-term strategic asset, reinforcing its commitment to digital capital.
As the largest corporate Bitcoin holder, Strategy’s moves heavily influence market sentiment, and its latest stock offering signals continued confidence in Bitcoin’s future.
