Zinger Key Points
- Strategy to issue $4.2 billion in Series A Perpetual Stride Preferred Stock through a new at-the-market (ATM) program.
- Proceeds will fund additional Bitcoin (BTC) purchases, corporate initiatives, and dividends on existing preferred shares.
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Strategy MSTR on Monday announced the launch of a $4.2 billion ATM stock offering, aiming to scale its Bitcoin BTC/USD holdings and enhance capital flexibility.
What Happened: The offering involves the sale of its 10.00% Series A Perpetual Stride Preferred Stock (STRD), as unveiled during an investor presentation by CEO Phong Lee and Executive Chairman Michael Saylor.
The proceeds will be used to purchase more Bitcoin, fund general corporate operations, and support dividend payments for other preferred stock classes, including STRK and STRF.
The company plans to sell the shares in a gradual, market-aware manner, potentially via block trades or negotiated deals.
This move follows a brief pause in Bitcoin purchases from June 30 to July 6, marking the first break in BTC accumulation in over three months. In late May, Strategy announced a $2.1 billion ATM program for acquiring BTC.
The new offering is part of Strategy's expanded "42/42" capital plan, which aims to raise $84 billion for Bitcoin acquisitions by 2027, double its original "21/21" goal. The firm disclosed that the plan is already 38% complete.
In Q2, Strategy raised $6.8 billion via ATM sales of MSTR common stock and preferred shares STRK, STRF, and the initial STRD offering.
Also Read: Strategy Adds 4,980 Bitcoin, Ups Total Stack To $42 Billion
Why It Matters: In a post on X on July 5, Saylor emphasized that MSTR, BTC, and STRK represent three forms of Bitcoin exposure.
As of now, Strategy holds 597,325 BTC, worth over $65 billion, purchased at an average price of $70,982 per coin, totaling $42.4 billion in cost. This amounts to 2.8% of Bitcoin's total supply, resulting in $22.6 billion in unrealized profits.
In Q2, the company reported $14.05 billion in paper gains and a $4.04 billion deferred tax liability, highlighting the scale and impact of its crypto-focused strategy.
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