- Strategy raises up to $21B through stock sales to boost Bitcoin holdings.
- Saylor proposes the U.S. acquire 5%-25% of Bitcoin supply to create a national reserve.
- Strategy holds 499,096 BTC, worth $41.2B, aiming for more acquisitions.
Strategy, formerly MicroStrategy, is launching a $2.1 billion fundraising effort to significantly increase its Bitcoin holdings.
The company intends to issue shares through its At the Market (ATM) program to achieve this goal. This move emphasizes Strategy’s sustained commitment to cryptocurrency and digital asset expansion. CEO Michael Saylor publicly announced the initiative through social media platform X.
Convertible Stock Offering via “ATM” for Flexible Market Access
The company will issue convertible preferred stock, which can be converted into Strategy’s Class A common stock. This equity will be sold over an extended period under a disciplined sales agreement. The sale will be conducted through the ATM program.
This mechanism allows Strategy to issue shares depending on market conditions. Essentially, the stock will be sold according to the trading price and volumes at the moment of sale, providing transaction flexibility.
Related: Bitcoin Whale Alert: Strategy’s 499K BTC Hoard – Paper Losses Mount
Primary Use of Funds: Corporate Growth Initiatives & Bitcoin Acquisitions
Funds for Corporate Growth and Bitcoin Acquisition: The primary goal of this sale is to raise funds for general corporate purposes. A portion of these funds will be dedicated to acquiring more Bitcoin.
Strategy currently holds 499,096 BTC. These holdings are worth approximately $41.2 billion. The company acquired these holdings for a total of $33.1 billion at an average price of $66,423 per BTC.
Regulatory Compliance: SEC & Securities Act Adherence
The sale of preferred stock will comply with Rule 415(a)(4) under the Securities Act of 1933 and follow the regulations in an automatic shelf registration statement filed with the U.S. Securities and Exchange Commission (SEC).
Moreover, the announcement states that it does not constitute an offer to sell or request to buy the preferred stock. The sale will be conducted according to the legal requirements of individual jurisdictions.
The company had previously disclosed plans to issue and sell up to $21 billion in equity and $21 billion in fixed-income securities over the next three years. This ambitious plan is part of its “21/21 plan”.
Saylor’s Vision for the U.S. and Bitcoin
On March 7, 2025, Strategy CEO Michael Saylor attended the White House Crypto Summit. During his presentation, he presented his vision for positioning the U.S. as a global leader in digital assets.
Related: Is Michael Saylor’s Latest Tweet a Secret Message About Another Bitcoin Binge?
He proposed that the U.S. government acquire between 5% and 25% of Bitcoin’s total supply by 2035. This action would establish a national Bitcoin reserve. Saylor projected that this initiative could produce between $16 trillion and $81 trillion by 2045. He highlighted potential economic benefits.
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
