Strategy launches $4.2 billion at-the-market offering of preferred stock

TYSONS CORNER, Va. - Strategy (Nasdaq:MSTR; STRK; STRF; STRD; STRC), whose stock has surged over 165% in the past year to trade at $401.86, announced Thursday it has established an at-the-market (ATM) program to sell up to $4.2 billion of its Variable Rate Series A Perpetual Stretch Preferred Stock. According to InvestingPro data, the company maintains a moderate debt level with a debt-to-equity ratio of 0.25.

The company, formerly known as MicroStrategy, plans to conduct sales of the STRC Stock "in a disciplined manner over an extended period," considering trading price and volumes at the time of sale, according to a press release statement. With a market capitalization of $114 billion and significant stock price volatility, InvestingPro analysis indicates the stock is currently trading above its Fair Value.

Proceeds from the offering will be directed toward general corporate purposes, including bitcoin acquisition and working capital. The company may also use funds to pay cash dividends declared on shares of preferred stock other than the STRC Stock.

The preferred shares will be sold through agents using methods defined as at-the-market offerings under Rule 415(a)(4) of the Securities Act of 1933, which may include negotiated transactions or block trades.

Strategy filed a prospectus supplement with the Securities and Exchange Commission on July 31 under its existing automatic shelf registration statement that became effective on January 27, 2025.

The company describes itself as "the world’s first and largest Bitcoin Treasury Company" that has adopted bitcoin as its primary treasury reserve asset. Strategy uses proceeds from equity and debt financings, as well as cash flows from operations, to accumulate bitcoin.

In addition to its bitcoin holdings, Strategy provides enterprise analytics software and is exploring innovations in bitcoin applications integrated with analytics technology. The company maintains a strong gross profit margin of 71%, though InvestingPro analysis reveals challenges with profitability in the current fiscal year. Get access to 10+ additional ProTips and comprehensive analysis through InvestingPro’s detailed research reports, available for over 1,400 US stocks.

In other recent news, MicroStrategy reported a strong second-quarter performance for 2025, surpassing earnings expectations. The company achieved a fully diluted earnings per share (EPS) of $32.60, significantly above the forecasted -$0.10. Revenue also exceeded projections, reaching $114.49 million compared to the anticipated $113.65 million. Additionally, BTIG raised its price target for MicroStrategy to $700 from $620, maintaining a Buy rating on the stock. This adjustment was influenced by MicroStrategy’s $10 billion GAAP net income reported in the second quarter and increased support for bitcoin from various sectors. These developments highlight the company’s robust financial performance and positive outlook from analysts.

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