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TYSONS CORNER, Va. - Strategy (Nasdaq:MSTR; STRK; STRF; STRD), currently valued at $112.85 billion and known for its high stock volatility with a beta of 3.71, announced Monday it has established a sales agreement for an at-the-market (ATM) offering of its 10.00% Series A Perpetual Stride Preferred Stock worth up to $4.2 billion.
The company plans to execute sales of the STRD Stock "in a disciplined manner over an extended period," considering trading price and volume conditions at the time of each transaction, according to the press release statement.
Net proceeds from the ATM Program will be directed toward general corporate purposes, including bitcoin acquisition and working capital. The company may also use proceeds to pay dividends to holders of its other preferred stock series.
The offering will be conducted through methods defined as "at the market" under Rule 415(a)(4) of the Securities Act of 1933, including potential negotiated transactions or block trades.
Strategy filed a prospectus supplement with the Securities and Exchange Commission on Monday under its existing automatic shelf registration statement that became effective January 27, 2025.
The company, which describes itself as "the world’s first and largest Bitcoin Treasury Company," has adopted bitcoin as its primary treasury reserve asset. Strategy utilizes proceeds from equity and debt financings along with operational cash flows to accumulate bitcoin.
Strategy also operates an enterprise analytics software business, combining its focus on digital asset growth with analytics technology.
In other recent news, Strategy, formerly known as MicroStrategy, has launched a new platform named Strategy Mosaic aimed at unifying enterprise data for AI applications. This platform is designed to connect various data sources across enterprises to support AI-driven analytics. Recently, the company also made headlines with its bitcoin acquisitions, having purchased 4,980 bitcoins, leading TD Cowen to reiterate its Buy rating and maintain a $590.00 price target. Strategy’s total bitcoin holdings now stand at 592,345, with an average purchase price of $70,681 per bitcoin.
Additionally, Strategy elected Peter L. Briger, Jr. to its board of directors, while Wei-Ming Shao, the executive vice president and general counsel, announced his retirement at the end of the year. Meanwhile, JPMorgan has raised concerns about the company’s index inclusion risk as it continues its aggressive bitcoin strategy, which has significantly increased its market capitalization. This strategy has also led to a shift in financing methods, with the company moving towards high-yield instruments, including over $3 billion in preferred stock. These developments highlight Strategy’s ongoing efforts to balance its digital asset strategy with its enterprise analytics software business.
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