Strategy, the largest public corporate Bitcoin holder, announced its plans to raise up to $21 billion through a new stock offering program to purchase more cryptocurrency.
Capital Raising Plan
Strategy announced the launch of a new sales agreement called the "ATM Program," under which it will issue and sell its Series A perpetual preferred stock at a fixed 8% rate. These sales will be conducted in a disciplined manner, taking into account current market prices and trading volumes.
Bitcoin Acquisition Details
According to the filing with the Securities and Exchange Commission, Strategy intends to use the net proceeds from the ATM Program for general corporate purposes, including Bitcoin acquisition and working capital. Currently, the company holds 499,096 Bitcoin valued at $41.2 billion, acquired at an average price of $66,423 per unit.
Alternative Strategies and Initiatives
Strategy also revealed its "21/21 plan," aimed at raising up to $21 billion in equity and another $21 billion through fixed-income securities. Michael Saylor, the company's co-founder and former CEO, continues to emphasize the importance of Bitcoin adoption, including urging the US government to increase its Strategic Bitcoin Reserve holdings.
Strategy's plans to become an even larger holder of Bitcoin underscore the growing interest of institutional investors in cryptocurrencies amid increasing adoption in the banking sector.
