Strategy Unveils $2.1B At-The-Market Program To Acquire More Bitcoin

Strategy Inc. MSTR on Thursday announced the launch of a $2.1 billion at-the-market (ATM) offering for its preferred stock Strife STRF, expanding its capital structure and continuing its focus on Bitcoin BTC/USD-linked securities.

What Happened: The announcement was made during a company webcast by CEO Fong Lee and Executive Chairman Michael Saylor.

According to Lee, the program follows strong performance from the company's fixed income instruments.

"We see the liquidity in the market and we see the demand in the market for our instrument. We have confidence that a $2.1 billion ATM is something that we can also execute upon going forward," he said.

Strife, which carries a 10% coupon and is perpetual in duration, has gained 16% since its initial pricing at $85 and is now trading near $98.80.

Trading volume has averaged $23 million per day, compared to just $0.5 million for comparable preferreds.

The company believes this liquidity supports the feasibility of the ATM offering.

Strategy previously issued $212 million via its ATM for Strike STRK, a separate preferred instrument launched earlier this year.

Combined with equity issuance from its $42 billion MSTR shelf program, the firm has now utilized 55% of its capital raise target.

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Why It Matters: Saylor emphasized the role of Strife in attracting more conservative fixed-income investors.

"Our long-term goal with this instrument is for this to be deemed as the pristine fixed income preferred stock in the market," he said. "Strife is an instrument to draw a new class of investors into the Bitcoin universe."

The company's broader strategy includes a suite of Bitcoin-linked products ranging from highly volatile equity (MSTR) to structured income products like MISTI and BMACs.

These instruments are designed to meet varying investor needs based on risk tolerance and exposure preferences.

"We're going to continue to pioneer new forms of Bitcoin BTC equity and new forms of BTC credit that meet the needs of various capital markets investors," said Saylor.

Strategy's capital base is anchored by its reserve of 576,230 BTC, currently valued at approximately $60 billion. This reserve underpins the creditworthiness of the firm's fixed income products.

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