Strategy expands ATM programs across stock lines to fund ongoing bitcoin buys
Strategy is expanding its at-the-market (ATM) programs across common and preferred stock to raise capital for continuous bitcoin purchases.Summary
Strategy announced the expansion of its at-the-market (ATM) programs across its common stock and preferred share offerings, filing to sell up to $21 billion of additional common MSTR stock, $21 billion of STRC preferred shares, and $2.1 billion of STRK preferred shares. These programs allow the company to gradually issue shares to fund its ongoing bitcoin acquisitions, a strategy that has been central since early last year. This expansion occurs as Strategy continues to accumulate bitcoin, recently purchasing 1,031 BTC for $76.6 million, bringing its total holdings to 762,099 BTC, acquired at an average cost of roughly $57.7 billion. The ATM programs are key to the firm's broader "42/42" plan aiming for $84 billion in capital raises by 2027. However, this flexibility introduces significant costs; fully utilizing the new STRC program could add about $2.4 billion in annual dividend obligations, which Strategy's current cash reserves might only cover for about eight months.
(Source：The Block)