Strategy Unveils New $44B Plan to Fund Bitcoin Purchases

Michael Saylor’s Strategy has announced several capital-raising programs totaling $44.1 billion to fund Bitcoin purchases, including the sale of common shares and two of its dividend-paying equity vehicles.

Strategy plans to raise up to $21 billion by selling Strategy (MSTR) stock and another $21 billion from its high-yield perpetual preferred stock, Stretch (STRC), via new at-the-market programs, the company said in an 8-K filing to the US Securities and Exchange Commission on Monday.

Strategy also intends to sell up to $2.1 billion worth of Strike (STRK) — another of its perpetual preferred stock offerings. The company didn’t specify a timeline for the issuances, stating that shares may be sold “from time to time.”

Strategy has been marketing its securities as a way for investors to gain exposure to Bitcoin, which is currently down nearly 70% from its all-time high. The company is currently carrying an unrealized loss of 6.3% on its Bitcoin holdings.

Strategy’s revised ATM equity program enables it to sell more shares incrementally into the open market rather than relying on fewer large-scale capital raises from external investors, as it previously did through convertible debt. 

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Strategy’s preferred stocks, such as STRC and STRK, give investors monthly dividends while enabling Strategy to grow its Bitcoin holdings without issuing additional MSTR common shares.

Strategy added 90K BTC to its treasury in 3 months

Strategy said it bought 1,031 Bitcoin worth $76.6 million in its latest purchase on Monday, adding to its larger-than-usual purchases this month, which include 17,994 Bitcoin on March 9 and 22,337 Bitcoin on March 16 for a combined $2.9 billion.