Strategy Announces Preferred Stock Offering to Fund Additional BTC Purchases
Michael Saylor’s business intelligence company, Strategy, has announced a significant move by entering into a sales agreement to offer up to $21 billion of 8% Series A Perpetual Strike Preferred Stock. This announcement was made through a filing with the U.S. Securities and Exchange Commission (SEC), which highlights the growing financial ambitions of the firm as it emphasizes its focus on Bitcoin acquisition.
The preferred shares, which have a nominal par value of $0.001, are convertible into class A common stock of Strategy. The company intends to execute this offering under an at-the-market (ATM) program, allowing for flexibility in selling the shares based on market conditions.
In a press release detailing the stock offering, Strategy clarified that the proceeds from this initiative would primarily be allocated for general corporate purposes, including the acquisition of additional Bitcoin and bolstering its working capital. Notably, the process for issuing the perpetual strike preferred stock will take place incrementally, enabling the firm to issue shares in a “disciplined manner,” aligned with market trading prices and volumes.
The equity offering will be compliant with Rule 415(a)(4) of the Securities Act of 1933, utilizing various sale methods such as negotiated transactions, at-the-market offerings, and block trades. This initiative will be supported by a prospectus supplement filed on March 10th under the firm’s existing automatic shelf registration statement, which became active on January 27th of this year.
Having established itself as the largest corporate holder of Bitcoin, Strategy’s upcoming capital influx is expected to significantly bolster its Bitcoin reserves, emphasizing the firm’s commitment to cryptocurrency as a foundational element of its corporate strategy. The company has previously reiterated its long-term vision centered on Bitcoin acquisition, reaffirming its intention to expand its digital asset portfolio.
In addition to this stock offering, Strategy has undergone a rebranding process, recently dropping the “Micro” from its name to reflect its intensified focus on Bitcoin and artificial intelligence as transformative technologies. This strategic shift comes on the heels of a record-breaking fourth quarter in 2024, which represented the firm’s most considerable increase in quarterly Bitcoin holdings to date.
According to the latest updates from Bitcoin Treasuries, Strategy currently holds an impressive balance of 499,096 BTC, valued at approximately $39.87 billion. Even in light of these developments, the company’s stock (MSTR) has experienced a decrease, trading around $252, down more than 12% from the prior close, suggesting market volatility surrounding the announcement and its potential implications.
