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Software firm-turned-Bitcoin treasury company Strategy is adding more ways to boost its Bitcoin buying power. The firm on Monday unveiled plans to raise an eye-popping $44 billion through a mix of common and preferred stock, aiming to fund future Bitcoin buys.
Meanwhile, Strategy has acquired more Bitcoin in a much smaller purchase than its previous two weekly buys as the Michael Saylor-led firm continues to lean into the market downturn.
Strategy Announces $44 Billion BTC Buying Plans
On Monday, Strategy rolled out a $44 billion at-the-market (ATM) equity program, evenly split between $21 billion in Class A common stock and $21 billion in its Variable Rate Series A Perpetual Stretch Preferred Stock (STRC), according to a Form 8-K filing.
That’s on top of a new $2.1 billion ATM program for its STRK preferred stock, replacing the previous STRK program, which still had over $20 billion available.
The new programs will enable Strategy to steadily sell shares in the market rather than raising funds in a single transaction. Proceeds from past programs have financed many of the company’s aggressive Bitcoin purchases since early last year, leveraging a growing range of issuance vehicles, including ATM facilities linked to preferred stock products such as STRF and STRD.
Strategy Extends Bitcoin-Buying Streak
Strategy purchased an additional 1,031 BTC for roughly $76.6 million, paying an average price of $74,326 per Bitcoin between March 16 and March 22, according to a Monday filing with the SEC.
The latest acquisition lifted the firm’s total holdings to 762,099 BTC, worth around $53 billion, thereby cornering over 3.5% of Bitcoin’s total 21 million-circulating-supply. Strategy has spent $57.69 billion to build its total Bitcoin stash.
As such, Bitcoin’s largest corporate holder was facing an unrealized loss of nearly $4.69 billion, having bought its Bitcoin at an average price of $75,694 per coin.
The latest purchases were funded through proceeds from at-the-market sales of its Class A common stock, MSTR. Over the past week, the Tysons Corner, Virginia-based company sold 509,111 MSTR shares, raising approximately $76.5 million.
This latest purchase marks a significant slowdown compared to the prior two weeks, when Strategy acquired over $1 billion worth of Bitcoin, capitalizing on the issuance of its STRC preferred shares.
Source: https://zycrypto.com/strategy-unleashes-massive-44-billion-plan-to-snatch-up-even-more-bitcoin-as-total-stash-hits-762k-btc/
