Key Takeaways
- Strategy has launched a $2.1 billion preferred stock sale to buy more bitcoin.
- The company recently acquired 7,390 BTC for $764.9 million.
- Strategy now holds over 576,000 BTC, worth more than $64 billion.
Strategy, formerly known as MicroStrategy, announced a $2.1 billion at-the-market (ATM) offering of its 10% Series A Perpetual Strife Preferred Stock (STRF), with proceeds earmarked in part for acquiring more bitcoin.
Incremental share sales
The shares will be sold incrementally, based on prevailing market conditions, including price and trading volume.
Strategy said in a statement the funds raised will go toward general corporate purposes, working capital, and further bitcoin purchases.
Recent Bitcoin Acquisition
This move comes just days after the firm revealed it had acquired an additional 7,390 BTC for $764.9 million between May 12 and May 18.
The purchase was made using funds from earlier sales of class A common stock (MSTR) and another preferred stock, STRK, at an average price of $103,498 per bitcoin.
Current Bitcoin holdings
As of now, Strategy holds 576,230 BTC — over $64 billion in value — acquired at an average price of $69,726 per bitcoin, for a total spend of roughly $40.2 billion.
This represents more than 2.7% of bitcoin’s fixed 21 million supply.
Co-founder and executive chairman Michael Saylor said:
That’s approximately $23.8 billion in unrealized gains.
Expansion of the “42/42” plan
The new STRF issuance complements Strategy’s expanded “42/42” plan, a target to raise $84 billion through 2027 for bitcoin acquisitions via equity and convertible notes — doubling its initial $42 billion “21/21” plan.
