James Richardson
Strategy, formerly known as MicroStrategy, has announced a major new financing initiative aimed at increasing its Bitcoin reserves. The company has launched an at-the-market (ATM) offering of its 10.00% Series A Perpetual Preferred Stock (STRF), with a total value of up to $2.1 billion, according to a press release issued Thursday.
Under the terms of the agreement, Strategy will gradually sell shares of STRF based on market demand and trading conditions. This includes potential block trades and negotiated sales, allowing the firm to optimize capital intake.
The company said it intends to use the raised capital for corporate purposes, with a key focus on buying more bitcoin and strengthening its working capital reserves.
Just earlier this week, Strategy revealed a fresh Bitcoin purchase of 7,390 BTC at an average price of $103,498 per coin, spending around $764.9 million between May 12 and May 18. The acquisition was funded by previous sales of its MSTR common stock and STRK perpetual preferred shares.
Holding Over $64 Billion in BTC
As of now, Strategy controls a total of 576,230 BTC, acquired at an average cost of $69,726 per bitcoin, including fees. The entire stash is currently worth over $64 billion, resulting in unrealized profits of around $23.8 billion, according to Strategyโs Executive Chairman and Co-Founder Michael Saylor. This stash represents more than 2.7% of the total 21 million Bitcoin supply.
The Bold โ42/42 Planโ and Corporate Imitators
Strategy’s newest move is part of its broader “42/42” capital strategy, which aims to raise $84 billion in capital (split between equity and convertible debt) by 2027. This plan replaced the previous “21/21” initiative, which was exhausted after reaching its equity offering goals.
The company’s aggressive approach to Bitcoin accumulation has inspired a wave of corporate followers, including Metaplanet, Semler Scientific, KULR, Twenty One, and Nakamoto. These firms are beginning to treat bitcoin as a strategic reserve asset, mirroring Strategy’s pioneering approach.
Analysts Forecast Massive Growth in Bitcoin Treasuries
Financial analysts at Bernstein project that Strategy and similar firms could inject up to $330 billion into Bitcoin over the next five years, especially if U.S. regulatory policies become more favorable toward crypto.
According to TradingView, Strategyโs stock (MSTR) saw a 2.4% increase in pre-market trading on Thursday, indicating strong investor confidence in the firmโs ongoing crypto expansion strategy.
