Strategy (formerly MicroStrategy) has announced plans to raise $2.1 billion through the sale of the Series A Perpetual Strife Preferred Stock (STRF).
According to a statement from May 22, the shares will be issued under the AT-The-Market (ATM) program. This structure allows the strategy to gradually sell stocks based on preferred market conditions such as trading volume and price.
The funds raised from these offers will be used to fuel the company’s Bitcoin acquisitions and other corporate initiatives.
ISK
The company partners with TD Securities, Barclays Capital and a benchmarking company to manage its offerings, according to the prospectus. STRF shares are listed at the Nasdaq Global Select Market and Trady for $100.65.
The strategy revealed that the issuance will be added to the 8.5 million STRF shares already in circulation.
Preferred stocks are not convertible to other securities and do not offer preemptive rights to investors. This means that holders will not be prioritized in future inventory offerings and will not benefit from stock conversions.
Swan, a Bitcoin-focused financial company, described the supply as a “Trojan horse” that helps to put conservative, fixed-income capital into Bitcoin.
addition:
“STRF pays 10% yield, is over-materialized with BTC, designed to look untouched by Tradfi. The target investment grade treatment. Wall Street is pushing forward with spot ETFs, but the strategy is tied to STRK, STRF, converts and high-Yield ETFs all in MSTR.”
Strategic fundraising activities
The latest stock sales are part of the strategy’s broader 42/42 capital raise plan.
With the latest move, the company is running three ATM sales programs simultaneously, including the MSTR program, which could raise around $188.9 billion.
Meanwhile, the company allocates $217.9 billion to STRK and $2.1 billion to STRF.
The company currently owns 576,230 BTC, Bitcoin’s largest corporate holder, and has no plans to stop the accumulation of the flagship’s cryptocurrency.
Saylor Tracker data shows that the company’s Bitcoin Stash is worth around $64 billion, up over 59% from its $40.2 billion cost base.