Strategy (formerly MicroStrategy) unveils plans to raise $21 billion to buy more Bitcoin

Strategy (formerly known as MicroStrategy) has unveiled plans to raise $21 billion through its Series A preferred stock (STRK) to acquire more Bitcoin.

MicroStrategy (NASDAQ:MCRI) has announced plans to raise up to $21 billion through the sale of its Series A preferred stock (STRK) in order to acquire more Bitcoin.

According to a Friday (March 10) statement, the company has entered into an equity sales agreement for the issuance and sale of shares of its 8.00% Series A perpetual strike preferred stock at the market (ATM). The shares will be priced at $0.001, with the total offering capped at $21 billion.

Furthermore, investors holding STRK will be able to exchange their shares for Class A common stock, subject to specific conditions.

In its statement, MicroStrategy noted that sales under the ATM Program will be conducted gradually, taking into account factors such as trading volume and price fluctuations.

As for STRK, it is a new type of preferred stock that provides additional liquidity for MicroStrategy’s Bitcoin acquisition plans.

Unlike bonds, which have fixed maturity dates, preferred stocks do not have a redemption period. Instead, STRK offers an 8% annual dividend as long as the company remains operational.

Since introducing this financial instrument in January, MicroStrategy has already raised over $584 million through its convertible preferred stock offering.

The company also claims STRK has been the past decade’s highest-performing and most liquid preferred stock.

Meanwhile, MicroStrategy intends to use the net proceeds from the ATM Program for general corporate purposes, including acquiring more Bitcoin.

This move aligns with MicroStrategy’s ongoing approach to strengthening its Bitcoin position through multiple financial mechanisms, including equity financing, debt issuance, and operational cash flows.

On Feb. 24, the firm made its most recent Bitcoin purchase, adding 20,356 BTC for approximately $2 billion. This pushed its total Bitcoin holdings to 499,096 BTC, valued at over $47 billion.

Since launching its Bitcoin accumulation strategy under Michael Saylor’s leadership, MicroStrategy has spent $33.1 billion, including fees, at an average purchase price of $66,357 per BTC.

Despite the latest fundraising effort, MicroStrategy’s stock has faced downward pressure. According to Google Finance data, MSTR is trading at $252.48 after a 12% decline the past day.