Strategy, formerly MicroStrategy, has launched a fresh $2.1 billion share offering under its STRF programme. The company will offer its 10% Series A Perpetual Strife Preferred Stock on an at-the-market arrangement over time.
The method of sale will provide the firm flexibility to offer shares depending on market conditions, such as trading volume and share prices. The firm has clearly articulated the aim of utilizing raised proceeds for general corporate purposes and bulk purchases of bitcoin.
This comes as part of the firm’s ongoing approach of connecting corporate finance and investment in Bitcoin. Strategy has signed a sales agreement for disposing of the STRF shares on a gradual scale. The sales will take place as block trades or as negotiated transactions subject to favorable market conditions.
The firm feels this gradual approach provides flexibility without precluding the raising of capital toward the firm’s long-term framework. The proceeds will also be used in supporting Strategy’s corporate and working requirements as well as expanding the firm’s bitcoin portfolio.
Strategy finalizes $764M Bitcoin purchase today
Days before this report, Strategy finalized the purchase of 7,390 bitcoins between May 12 and May 18 this year. The purchase amounts to approximately $764.9 million at an average of $103,498 per bitcoin.
The acquisition used proceeds from recent sales of the class A common stock (MSTR) and STRK preferred stock. These acquisitions pushed Strategy’s bitcoin holdings to a total of 576,230 BTC valued at over $64 billion in the current market.
Strategy’s co-founder and executive chairman, Michael Saylor has confirmed the firm has paid $40.2 billion, including fee payments, on building out its bitcoin treasury. The total investment works out at approximately $69,726 per bitcoin and leaves the company making a paper profit of approximately $23.8 billion.
Strategy’s total allocation now accounts for almost 2.7% of bitcoin’s supply-limited 21 million total supply and makes it the largest corporate owner of the asset by a considerable margin.
The newly launched STRF offering slots in as part of Strategy’s broader “42/42” capital plan to raise $84 billion cumulatively by 2027. The wider plan extends the firm’s earlier “21/21” plan and comprises both equity and convertible note offerings.
