MicroStrategy, led by Michael Saylor, said it is planning to raise $4.2 billion by selling preferred stock to fund more Bitcoin purchases. According to a filing released Monday morning, the company has entered a sales agreement to offer its 10% Series A Perpetual Stride Preferred Stock (STRD) under an at-the-market (ATM) program over time.
The shares will be sold gradually depending on trading volume and price at the time of sale. Proceeds will go toward general business needs and more Bitcoin purchases. In the release, MicroStrategy said it may also use the funds to support working capital and possibly pay dividends to holders of its STRD and Strike preferred stocks.
The announcement follows a profitable second quarter for the company, which was all thanks to the rising value of its Bitcoin holdings, which now exceed 500,000 Bitcoin. However, the holding has dropped by 0.32% in the last 24 hours, according to Arkham Intelligence.
During the quarter ending June 30, Bitcoin’s price jumped from around $82,000 to $108,000, which gave the company’s portfolio a significant boost. The company also raised $6.8 billion in the same quarter from a mix of capital market moves, which includes stock offerings and preferred stock sales.
It still has billions in available capacity under existing sales programs: $18.1 billion under the 2025 Common ATM, $20.5 billion under STRK ATM, and $1.9 billion under STRF ATM. MicroStrategy said the STRD stock program would continue over time and depend on how much demand exists in the market.
The STRD shares, which launched on June 11, have already surged by 6%. Nonetheless, even with the strong quarter, MicroStrategy shares (MSTR) were down 2.72% TO $401 in early Monday trading, as Bitcoin slightly dipped from recent highs.
At the time of writing this report, Bitcoin was priced at $108,006, up 2.21% today, with a significant amount of activity going on of up 25% to $40 billion, according to CoinMarketCap.
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