Strategy Inc., formerly known as MicroStrategy, has announced the launch of a $4.2 billion at-the-market (ATM) preferred stock sale. The funds raised will be used to support general corporate operations, with a strong emphasis on acquiring more bitcoin.
This new stock offering comes in the form of Series A Perpetual Stride Preferred Stock (STRD), carrying a fixed 10% non-cumulative annual dividend. The decision highlights the company’s ongoing dedication to expanding its digital asset holdings.
Strategic Funding for Bitcoin Accumulation
Strategy plans to issue STRD shares gradually, depending on market demand, trading volume, and price movement. The company emphasized that the offering will be carried out through a flexible, market-driven approach to maximize proceeds.
According to the company’s statement, proceeds will be used not only to purchase bitcoin but also to support working capital and pay dividends on previously issued preferred stock, including STRK and STRF.
Company Holds Over $65 Billion in Bitcoin
As of July 6, Strategy holds 597,325 BTC, with a total cost basis of $42.4 billion, equating to an average acquisition price of $70,982 per bitcoin. These holdings represent over 2.8% of bitcoin’s fixed supply of 21 million.
The current market value of the company’s bitcoin reserves exceeds $65 billion, implying an unrealized gain of approximately $22.6 billion. This figure does not account for deferred tax liabilities, which the company also disclosed.
Temporary Pause in Bitcoin Purchases
In a recent regulatory filing, Strategy confirmed that it paused bitcoin purchases between June 30 and July 6. This marks the first pause since early April. The timing coincided with the release of the firm’s Q2 financial results, showing an unrealized gain of $14.05 billion on digital assets and a deferred tax expense of $4.04 billion.
Despite the pause, Strategy remains committed to its long-term vision of increasing bitcoin holdings through a multi-pronged capital strategy.
“42/42” Plan Expanded to $84 Billion Target
The STRD offering is part of Strategy’s expanded “42/42” plan, now aiming for $84 billion in total capital raises via equity and convertible offerings by 2027. The plan originally targeted $42 billion but was upsized after earlier capital programs were completed.
This bold financial roadmap positions Strategy as a leading corporate force in the bitcoin ecosystem, with continued focus on accumulating digital assets and driving long-term value.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.