Strategy launches $21 billion preferred stock sale

TYSONS CORNER, Va. - Strategy™ (NASDAQ:MSTR; STRK), a $74.75 billion market cap company recognized for its Bitcoin treasury strategy, announced today its plan to potentially issue and sell up to $21 billion of its 8.00% series A perpetual strike preferred stock. According to InvestingPro data, the company’s stock has shown significant volatility, delivering a 121.52% return over the past six months. The sales are to be conducted through an at-the-market (ATM) offering program, which will be executed based on prevailing market conditions.

The company has stated that the proceeds from this ATM program will be used for general corporate purposes. These include the acquisition of Bitcoin, which Strategy has adopted as its primary treasury reserve asset, and to bolster its working capital. InvestingPro analysis reveals the company’s current ratio of 0.71 indicates short-term obligations exceed liquid assets, while total debt stands at $7.26 billion.

Strategy’s ATM program allows for the sale of perpetual strike preferred stock in a regulated manner, in accordance with the Securities Act of 1933, as amended. Sales may occur through various methods, including negotiated transactions or block trades, as permitted by law.

This financial move follows the filing of a prospectus supplement with the Securities and Exchange Commission on March 10, 2025, under an existing shelf registration statement that was effective as of January 27, 2025.

The company emphasizes that the press release does not constitute an offer to sell or a solicitation of an offer to buy the perpetual strike preferred stock. Additionally, sales will not be conducted in any jurisdiction where such actions would be unlawful without proper registration or qualification under the applicable securities laws.

Strategy, also known as MicroStrategy Incorporated, has positioned itself as a pioneer in leveraging Bitcoin for corporate treasury purposes. With annual revenue of $463.46 million, the company continues to offer AI-powered enterprise analytics software and is exploring innovations in Bitcoin applications. For comprehensive analysis and detailed insights, investors can access the full Strategy Research Report on InvestingPro, which includes expert analysis, valuation metrics, and 12 additional ProTips about the company’s performance and outlook.

It is important to note that this announcement contains forward-looking statements, which are subject to various risks and uncertainties. These may affect the actual results of the ATM program, including market conditions and other factors detailed in the company’s filings with the SEC.

The information in this article is based on a press release statement from Strategy.

In other recent news, MicroStrategy Incorporated has announced a quarterly cash dividend on its 8.00% series A perpetual strike preferred stock, payable on March 31, 2025. The company also disclosed that it has not sold any shares of its class A common stock or purchased additional bitcoin between February 24 and March 2, 2025. As of March 2, MicroStrategy holds approximately 499,096 bitcoins, acquired at an average price of $66,357 per bitcoin. In a separate development, MicroStrategy revealed it acquired an additional 20,356 bitcoins for approximately $1.99 billion, funded through a convertible notes offering. This offering raised $2.0 billion, with an option for initial purchasers to buy an additional $300 million in notes. The company has priced a $2 billion private offering of convertible senior notes due 2030, with net proceeds intended for general corporate purposes, including further bitcoin acquisitions. Meanwhile, Bernstein analysts have expressed a positive long-term outlook on Bitcoin, despite a recent price drop, viewing it as an opportunity for investment. These developments highlight MicroStrategy’s ongoing commitment to its Bitcoin strategy and financial maneuvers.

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