Strategy Launches $4.2 Billion ATM Program to Boost Bitcoin Holdings by 30%

Strategy, a prominent player in the digital asset sector, has unveiled a new capital plan aimed at expanding its Bitcoin holdings. The company has launched a $4.2 billion capital-raising initiative through an at-the-market (ATM) program, offering shares of its 10.00% Series A Perpetual Preferred Stock. These shares, priced at a nominal value of $0.001, are intended to fuel Strategy’s ongoing accumulation of Bitcoin, potentially pushing its reserves past the 600,000 mark and reinforcing its dominance as the largest corporate holder of the digital asset.

The proceeds from this initiative will be directed toward multiple purposes, including corporate operations, working capital, and additional Bitcoin acquisitions. A portion of the funds may also support dividend payments to current holders of the company’s preferred stock. This move comes shortly after Strategy paused its weekly Bitcoin purchases following 12 straight weeks of acquisitions. Despite the pause, the company reported $14 billion in unrealized gains on its Bitcoin investments. As of now, Strategy owns 597,325 BTC, purchased at a total cost of $42.4 billion, translating to an average price of $70,982 per coin.

By issuing preferred shares under the STRD ticker, Strategy is positioning itself to potentially cross the symbolic 600,000 BTC threshold. However, the company emphasized that the sale of these shares would be carried out cautiously over time, taking market conditions and share performance into account. This strategic move underscores Strategy's commitment to leveraging its financial resources to capitalize on the growing value of Bitcoin.

During the second quarter, Strategy reported a substantial unrealized gain of $14.05 billion on its digital assets, boosting the carrying value of its Bitcoin holdings to $64.36 billion. The company's Bitcoin reserves, which exceed 500,000 coins, benefited from a roughly 30% increase in the price of Bitcoin, which rose from around $82,000 to $108,000 during the three months ended June 30. This significant gain highlights the company's proactive approach to capitalizing on market opportunities and strengthening its position in the digital asset space.

In addition to these impressive gains, Strategy unveiled a new $4.2 billion at-the-market (ATM) program for its STRD preferred series of stock. The proceeds from this offering are designated to fund additional Bitcoin purchases, reinforcing the company's strategic investment in the cryptocurrency. This move underscores Strategy's commitment to leveraging its financial resources to capitalize on the growing value of Bitcoin.

During the second quarter, Strategy raised $6.8 billion in net proceeds through various capital markets activities. These activities included preferred stock offerings and at-the-market sales of class A common stock. As of June 30, the company retained significant capacity for future issuances, with $18.1 billion remaining under the 2025 Common ATM, $20.5 billion under the STRK ATM, and $1.9 billion under the STRF ATM. This financial flexibility positions Strategy to continue its aggressive investment strategy in the digital asset market.

The announcement of the $4.2 billion ATM program for STRD preferred stock is a strategic move by Strategy to ensure it has the financial resources to continue acquiring Bitcoin. The company plans to sell STRD stock over time, taking into account the trading price and volumes at each sale. The proceeds from this ATM program are earmarked for general corporate purposes, including acquiring Bitcoin, supporting working capital needs, and potentially paying dividends to holders of its preferred stock.

Strategy's aggressive investment in Bitcoin and its strategic use of capital markets to fund these investments highlight the company's confidence in the long-term value of digital assets. The significant unrealized gains and the new ATM program demonstrate Strategy's proactive approach to capitalizing on market opportunities and strengthening its position in the digital asset space. As the price of Bitcoin continues to rise, Strategy's investments are likely to yield even greater returns, further solidifying its leadership in the industry.