Strategy seeks to raise $2.1 billion from STRF stock offering to bolster its Bitcoin holdings

Strategy (formerly MicroStrategy) has unveiled plans to rise $2.1 cardinal via income of its Series A Perpetual Strife Preferred Stock (STRF).

According to the May 22 statement, the banal volition beryllium issued nether an at-the-market (ATM) program. This operation allows Strategy to merchantability shares gradually, based connected favorable marketplace conditions similar trading measurement and price.

The funds raised from these offerings volition beryllium utilized to substance the firm’s Bitcoin acquisitions and different firm initiatives.

STRF

According to the prospectus, the steadfast has partnered with TD Securities, Barclays Capital, and The Benchmark Company to negociate the offering. STRF shares are listed connected the Nasdaq Global Select Market and commercialized astatine $100.65 per unit.

Strategy clarified that this issuance volition beryllium successful summation to the 8.5 cardinal STRF shares already successful circulation.

The preferred banal is not convertible into different securities and offers nary preemptive rights to investors. This means holders volition not summation precedence successful aboriginal banal offerings nor payment from equity conversions.

Swan, a Bitcoin-focused fiscal firm, described the offering arsenic a “Trojan horse” that would assistance to onboard blimpish fixed-income superior into Bitcoin.

It added:

“STRF pays a 10% yield, is overcollateralized with BTC, and is engineered to look pristine to TradFi. The goal? Investment-grade treatment. While Wall Street pushes spot ETFs, Strategy is gathering an full Bitcoin recognition market—STRK, STRF, converts, and high-yield ETFs each tied to MSTR.”

Strategy’s fundraising efforts

The latest stock merchantability is portion of Strategy’s broader 42/42 superior raising plan.

With the latest move, the institution has 3 ATM income programs moving simultaneously, including an MSTR program, which tin inactive rise astir $18.89 billion.

Meanwhile, the steadfast has allocated $21.79 cardinal to STRK and $2.1 cardinal to STRF.

The institution presently holds 576,230 BTC, making it the largest firm holder of Bitcoin, and has nary plans to halt accumulating the flagship crypto.

Data from Saylor Tracker shows that the firm’s Bitcoin stash is worthy astir $64 billion, up much than 59% from its $40.2 cardinal outgo basis.

The station Strategy seeks to rise $2.1 cardinal from STRF banal offering to bolster its Bitcoin holdings appeared archetypal connected CryptoSlate.