Strategy Expands ATM Programs to Fund Ongoing Bitcoin Buys

Strategy (MSTR) acquired 1,031 Bitcoin for approximately $76.6 million last week, reflecting a measured pace of accumulation compared to recent large-scale purchases. The purchase was funded through the sale of Class A common stock, a shift from prior reliance on perpetual preferred equity. This move aligns with the company's broader capital-raising strategy, which includes ATM programs across its common and preferred stock offerings.

The average price per Bitcoin was $74,326, below Strategy's overall acquisition cost of $75,694. As of March 22, Strategy holds a total of 762,099 Bitcoin, valued at around $54 billion based on current prices. This represents a 7% unrealized loss compared to the total acquisition cost.

The company recently expanded its capital-raising initiatives by launching new ATM programs across its common stock and preferred share offerings. These programs include up to $21 billion in common stock, $21 billion in STRC preferred shares, and $2.1 billion in STRK preferred shares.

Why Did This Happen?

Strategy's shift from preferred equity to common stock for funding its Bitcoin purchases indicates a more cautious approach to capital raising. This shift reflects evolving market conditions and the need for improved capital efficiency. The company's broader '42/42' plan aims to raise $84 billion in total funding by 2027 to support continued Bitcoin accumulation.

How Has the Market Reacted?

Strategy's Bitcoin holdings are currently valued at $54 billion, down 7% from the acquisition cost, resulting in an unrealized loss of about $3.2 billion. The company's shares have declined from their 2025 highs, and its premium to net asset value has narrowed. This trend potentially makes future issuance less efficient if market conditions weaken further.

What Are Analysts Watching Next?

Texas Capital Securities maintains a Buy rating for Strategy with a $200 price target, based on assumptions of 10% annual appreciation in Bitcoin and a 1.19x multiple to net asset value. The firm highlights the company's conservative balance sheet and long-term value proposition.

Analysts are closely monitoring the impact of regulatory developments and potential Bitcoin price stabilization on the stock's performance. A key focus is on Strategy's ability to continue raising capital efficiently through its equity and convertible note programs.