Strategy Launches $2.1B Share Sale for Bitcoin Acquisitions

Strategy, the company formerly known as MicroStrategy, has launched a $2.1 billion share sale to fund further Bitcoin acquisitions. This move is part of the company's ongoing strategy to increase its holdings in the cryptocurrency, demonstrating its unwavering commitment to digital assets.

The fundraising effort involves issuing convertible preferred stock through its At the Market (ATM) program. This stock can be converted into Strategy’s Class A common stock and will be sold over an extended period under a disciplined sales agreement. The ATM program allows the company to issue shares based on market conditions, providing flexibility in the timing and volume of sales.

The primary goal of this share sale is to raise funds for general corporate purposes, with a significant portion dedicated to acquiring more Bitcoin. Strategy currently holds 499,096 BTC, valued at approximately $41.2 billion. The company acquired these holdings for a total of $33.1 billion at an average price of $66,423 per BTC, highlighting its substantial investment in the cryptocurrency.

The sale of preferred stock will comply with Rule 415(a)(4) under the Securities Act of 1933 and follow the regulations in an automatic shelf registration statement filed with the U.S. Securities and Exchange Commission. The company had previously disclosed plans to issue and sell up to $21 billion in equity and $21 billion in fixed-income securities over the next three years as part of its “21/21 plan.”

Strategy's CEO, Michael Saylor, has been a vocal advocate for Bitcoin, proposing that the U.S. government acquire between 5% and 25% of Bitcoin’s total supply by 2035 to establish a national Bitcoin reserve. Saylor presented this vision at the White House Crypto Summit, highlighting the potential economic benefits of such an initiative.

This latest fundraising effort underscores Strategy's confidence in the future of Bitcoin and its commitment to integrating the cryptocurrency into its corporate treasury strategy. By continuing to invest in Bitcoin, Strategy aims to solidify its position as a leader in the corporate adoption of cryptocurrencies, despite the inherent risks associated with the volatile cryptocurrency market.