Strategy Plans $21 Billion Stock Sale to Boost Bitcoin Holdings

Strategy, a prominent enterprise software firm, has announced a significant move to bolster its Bitcoin holdings. The company plans to sell approximately $21 billion worth of new shares through an "at-the-market" (ATM) offering of its Series A perpetual strike preferred stock. This initiative, dubbed the "ATM Program," aims to provide the company with the flexibility to sell shares gradually, avoiding sharp price drops and capitalizing on favorable market conditions. The proceeds from this stock offering will be used for general corporate purposes, including the acquisition of Bitcoin and working capital.

The ATM Program is designed to complement Strategy’s existing "21/21 plan," a long-term strategy to acquire $42 billion worth of Bitcoin. This plan aligns with the vision of Michael Saylor, who has been a vocal advocate for Bitcoin and its potential as a strategic asset. Saylor, despite stepping down from his CEO position, continues to promote Bitcoin’s benefits to corporations and governments, urging the U.S. government to recognize Bitcoin as a strategic asset and add it to the national reserve.

As of March 10th, 2025, Strategy holds around 499,096 BTC, valued at approximately $41 billion, making it the largest corporate holder of Bitcoin. The company’s average purchase price of $66,423 per BTC has allowed it to maintain gains despite market fluctuations. Since November 2024, Strategy has acquired nearly $23 billion in Bitcoin, demonstrating its unwavering commitment to the cryptocurrency. This bold approach highlights the company’s faith in Bitcoin’s long-term viability, even in the face of $3 billion in unrealized losses on recent purchases.

Strategy’s latest move has sparked mixed reactions. While the Bitcoin community is excited about the company’s continued investment in the cryptocurrency, analysts have expressed concerns about its reliance on Bitcoin and aggressive borrowing. The company’s shares dropped about 10% following the announcement, and Bitcoin itself experienced a 2.4% decline to $81,084. This volatility underscores the risks associated with cryptocurrency investments and the importance of prudent risk management.

The success of Strategy’s Bitcoin strategy will depend on several factors, including the future price of Bitcoin, the overall health of the cryptocurrency market, and the company’s financial management skills. Although Strategy has been successful in generating returns from its Bitcoin holdings, past performance does not guarantee future results. The company targets a 15% yield in 2025, a significant decline from the 74% yield achieved in 2024.

Strategy’s latest maneuver highlights the growing adoption of Bitcoin by corporations and institutions. Bitcoin maximalists view Strategy’s accumulation as a vote of confidence in BTC as a store of value and inflation hedge, despite the high risks involved. Other firms, such as Metaplanet and Semler Scientific, have also added Bitcoin to their balance sheets but are currently facing losses on their holdings. The stock sale provides Strategy with another financial instrument to raise $42 billion in the coming years, with an increasing focus on issuing fixed-income securities instead of relying solely on common share offerings.