Strategy to Raise $21B to Ramp Up Bitcoin Holdings

Michael Saylor’s business intelligence firm is at it again. Strategy has announced that it is raising $21 billion with the intention to buy more bitcoin (BTC) and handle other corporate purposes.

The announcement comes two weeks after the company unveiled a billion-dollar BTC purchase that increased its holdings by 20,356 coins to 499,096 BTC. At bitcoin’s trading price at the time, the acquisition cost $1.99 billion. Strategy did not buy any BTC last week; however, the latest fundraise signals more purchases in the coming week.

$21B For Additional BTC Purchases

To raise the $21 billion, Strategy entered a sales agreement with about ten companies to issue and sell shares of its 8.00% series A perpetual strike preferred stock, STRK. The shares will be sold for $0.001 each, arriving at the aggregate offering price of $21 billion. 

According to Strategy, holders of shares of the perpetual strike preferred stock can convert them into shares of Strategy’s class A common stock, MSTR. The company expects sales of STRK to be pursuant to an at-the-market (ATM) program over an extended period. This means the trading price and volume of the perpetual strike preferred stock will be considered at each time of sale.

“The perpetual strike preferred stock, subject to the terms and conditions of the Sales Agreement, may be sold by agents by any method that is deemed an “at the market offering” as defined in Rule 415(a)(4) promulgated under the Securities Act of 1933, as amended or any other method permitted by law, which may include negotiated transactions or block trades,” the business intelligence firm added.

Strategy has already filed the prospectus for the sales agreement with the United Securities and Exchange Commission on March 10.

An Upcoming Bitcoin Bank

The new ATM program is part of Strategy’s plan to achieve a $10 billion gain from its Bitcoin accumulation strategy by the end of 2025. The firm introduced the BTC $ Gain as a new key performance indicator when it rebranded and changed its name from MicroStrategy to Strategy about a month ago.

Meanwhile, the last bitcoin purchase was funded by a private offering of 0% convertible senior notes due in 2030. As time goes on, Strategy continues to find more ways to raise funds for extra BTC purchases, racing steadily towards its goal of becoming a bitcoin bank.

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