Key Highlights
- $21 Billion STRK Offering: Strategy plans to raise $21 billion through 8% Series A Perpetual Strike Preferred Stock (STRK) in an at-the-market program, targeting Bitcoin acquisitions as part of its treasury expansion.
- ‘21/21 Plan’ Evolution: This move advances Strategy’s October 2024 “21/21 Plan” to secure $42 billion by 2027—half via equity like STRK, half via fixed-income—aiming to maintain a 6-10% BTC Yield.
- Institutional Crypto Pivot: With 499,096 BTC already held, Strategy’s latest plan could tighten Bitcoin’s liquid supply, leveraging a pro-crypto U.S. shift to cement its lead as a “Bitcoin Treasury Company,”.
Strategy, the rebranded MicroStrategy and the world’s largest corporate Bitcoin holder, unveiled its latest financial maneuver: a plan to raise up to $21 billion through an at-the-market (ATM) offering of 8% Series A Perpetual Strike Preferred Stock (STRK). Announced via an SEC prospectus, this initiative builds on the company’s ambitious “21/21 Plan” from October 2024, which targets a total of $42 billion—split evenly between equity and fixed-income securities—to bolster its Bitcoin treasury by 2027. With Strategy already holding 499,096 BTC, acquired at an average cost of $66,357 per coin, this latest move underscores Executive Chairman Michael Saylor’s unrelenting vision to transform the firm into a Bitcoin-centric financial powerhouse.
The STRK offering, detailed by strategy.com, is designed for flexibility. Unlike traditional bonds with fixed maturities, perpetual preferred stock pays fixed dividends—8% annually here—indefinitely, with no mandatory redemption timeline, as long as Strategy remains operational. Shares carry a $100 liquidation preference and are convertible into Class A common stock (MSTR) under specific conditions, offering investors a hybrid equity-debt play. The proceeds, Strategy states, will fund “general corporate purposes,” with a clear emphasis on acquiring more Bitcoin, alongside working capital needs. This ATM structure allows sales over time—via market transactions, negotiated deals, or block trades—adapting to demand and conditions.
This $21 billion plan is the latest chapter in Strategy’s “21/21 Plan,” a three-year roadmap launched in Q3 2024 to raise $10 billion in 2025, $14 billion in 2026, and $18 billion in 2027. Initially outlined as $21 billion in equity and $21 billion in fixed-income instruments, the STRK offering slots into the equity tranche, complementing earlier efforts like a $2.1 billion raise in Q3 2024 via stock and convertible notes. Saylor, a vocal Bitcoin evangelist, frames this as a “digital transformation of capital,” aiming to maintain a BTC Yield—a metric of Bitcoin per share—of 6-10% annually from 2025-2027, down from a 17.8% year-to-date yield in 2024.
The strategy isn’t without risks. Investors.com warns that Strategy’s $21 billion spent since November 2024 has already faced headwinds, with market volatility challenging its leveraged approach. The firm’s market cap, hovering around $74.7 billion, reflects a premium over its Bitcoin holdings, raising dilution concerns as new shares flood the market.
Strategy’s $21 billion Bitcoin plan is a high-stakes bet on a digital future. If it navigates dilution, debt, and market swings, it could solidify its lead in institutional crypto adoption—potentially inspiring rivals to follow. For now, the world watches as Saylor doubles down, blending traditional finance with blockchain ambition in a way few dared before.
Disclaimer: TrueToCrypto.com (the “Website”) is for general informational purposes only and is obtained from independent sources that are believed to be reliable. However, TrueToCrypto.com, its owners, affiliates, officers, employees, and agents (collectively, “We,” “Us,” or “Our”) make no representations or warranties, express or implied, as to the accuracy, completeness, timeliness, reliability, or suitability of the information contained on or accessed through this Website. Further read Disclaimer.
