Strategy launches $2.1 billion STRF perpetual preferred stock ATM program to buy more bitcoin

Strategy (formerly MicroStrategy) has entered into a sales agreement to issue and sell up to $2.1 billion worth of shares of its 10.00% Series A Perpetual Strife Preferred Stock (STRF) via an at-the-market (ATM) program.

Strategy plans to sell the STRF shares gradually and strategically, taking into account market price and trading volume at the time of each sale, which may include negotiated transactions or block trades, according to a statement on Thursday.

The company intends to use the proceeds from the offering for general corporate purposes, including the acquisition of bitcoin, and for working capital.

On Monday, Strategy disclosed it had acquired an additional 7,390 BTC for approximately $764.9 million at an average price of $103,498 per bitcoin between May 12 and May 18, using proceeds from the sale of its class A common stock, MSTR, and perpetual strike preferred stock, STRK.

Strategy now holds a total of 576,230 BTC — worth over $64 billion — bought at an average price of $69,726 per bitcoin for a total cost of around $40.2 billion, including fees and expenses, according to the company’s co-founder and executive chairman, Michael Saylor. That’s the equivalent of more than 2.7% of bitcoin’s total 21 million supply and implies around $23.8 billion of paper gains.

Strategy’s STRK and STRF perpetual preferred stocks are in addition to the firm’s “42/42” plan, which targets a total capital raise of $84 billion in equity offerings and convertible notes for bitcoin acquisitions through 2027 — upsized from its initial $42 billion, “21/21” plan, of which the equity side ATM program was recently depleted.

Corporate bitcoin accumulation race

There are now more than 70 companies that have adopted some form of bitcoin treasury, with Twenty One and Nakamoto recently joining the likes of Metaplanet, Semler Scientific, and KULR in adopting a bitcoin acquisition model, pioneered by Strategy and Saylor.

Analysts at Bernstein predict that Strategy and its corporate copycats could add $330 billion to their bitcoin treasuries over the next five years, driven by a more pro-crypto regime in the U.S.

MSTR is currently up 2.4% in pre-market trading on Thursday, according to TradingView.