Strategy, formerly known as MicroStrategy, plans to raise $21 billion to acquire more Bitcoin after the world’s largest public corporate Bitcoin holder, run by Michael Saylor, announced a recent sales agreement.
According to the announcement, this agreement will allow the blockchain firm to issue and sell part of its 8% Series A perpetual preferred stock, STRK, through various channels, including at-the-market sales, block trades, and negotiated transactions.
The firm intends to use the proceeds from this sale for general-purpose policies, including corporate needs and the acquisition of Bitcoin.
Details of the Acquisition
According to Strategy’s statement, the agreement deal, dubbed the “ATM Program,” will be carried out in a disciplined manner over an extended period, considering the prices of the perpetual preferred stock at the time of sale.
“Strategy intends to use the net proceeds from the ATM Program for general corporate purposes, including the acquisition of Bitcoin and for working capital,” the firm said during the filing with the SEC.
Additionally, the perpetual preferred stock will have a liquidation option of $100 per share and accumulate dividends at a fixed rate of 8% per year. Previously, the company announced plans to issue and sell shares of its class A stock to raise $21 billion in equity and $21 billion in fixed-income securities, alongside its initial perpetual share offerings to accumulate Bitcoin over the next three years.
Since the start of 2025, Strategy has announced six Bitcoin acquisitions, buying a total of 52,696 BTC since Jan. 13.
Strategy Stock Records 12% Decline: What’s Next?
This announcement follows a notable 12% drop in Strategy’s value, sparking discussions around the MSTR stock. Analysts have attributed most of this drop to its recent Bitcoin acquisition plan, while others have been less optimistic, attributing its recent loss to the general bearish market sentiment.
However, Strategy boasts a magnificent Bitcoin portfolio, holding over 499,096 BTC ($41.2 billion), acquired for an aggregate amount of $33.1 billion at about $66,423 per BTC.
Strategy has become one of the most influential firms in the crypto industry since it announced its Bitcoin reserve and acquired its first BTC in August 2020.
READ MORE: Ripple Co-Founder Lost $150M XRP Due to LastPass Breach
