Strategy seeks to raise $44.1 billion…expanding Bitcoin purchases

Strategy, led by Michael Saylor, announced a plan to raise a total of $44.1 billion to fund additional Bitcoin (BTC) purchases.

According to Cointelegraph on the 23rd (local time), Strategy disclosed a new fundraising program—combining the issuance of common stock and preferred stock—through a filing submitted to the U.S. Securities and Exchange Commission (SEC).

Specifically, it plans to raise up to $21.0 billion through sales of its common stock (MSTR) and an additional $21.0 billion by issuing the high-dividend perpetual preferred stock Stretch (STRC). It also intends to secure up to $2.1 billion through the issuance of another preferred stock product, Strike (STRK).

The fundraising will be conducted via an “ATM (At-The-Market)” program, a structure in which shares are sold gradually over a period of time in line with market conditions. The strategy is to secure capital in a flexible manner rather than through a large, one-off raise as in the past.

Strategy is marketing these securities to investors as vehicles for indirect exposure to Bitcoin. In particular, preferred shares such as STRC and STRK are structured to offer monthly dividends while allowing the company to increase its Bitcoin holdings without additional dilution of common shares.

In practice, the company has continued aggressive buying. According to its latest filing, Strategy purchased an additional 1,031 BTC for about $76.6 million, and has expanded the scale of purchases by acquiring more than 22,000 BTC so far this month alone.

With roughly 90,000 BTC added in the first quarter of this year alone, its current holdings have increased to 762,099 BTC (worth about $54.0 billion).

However, with Bitcoin down sharply from its peak, Strategy’s holdings were shown to be sitting on an unrealized loss of about 6%.