Strategy Scales Bitcoin Treasury with $1.3 Billion Equity-Funded Purchase
In a significant move that underscores its unwavering commitment to Bitcoin as a primary treasury asset, Strategy (Nasdaq: MSTR) has executed one of its largest capital raises and immediate deployments in recent history. The Virginia-based technology firm, which has famously pivoted from a software business to becoming the largest publicly traded corporate holder of Bitcoin, raised approximately $1.3 billion through equity sales last week and swiftly deployed the entire sum to acquire more digital assets.
Details of the Latest Bitcoin Accumulation
According to a disclosure filed on March 8, Strategy purchased 17,994 Bitcoin between March 2 and March 8. The acquisition was completed at an average price of $70,946 per coin. This latest purchase elevates the company’s total Bitcoin holdings to 738,731 BTC. These assets have been accumulated at an aggregate cost of $56 billion, resulting in a blended average purchase price of $75,862 per Bitcoin. This strategy, initiated by Executive Chairman Michael Saylor in 2020, continues to position the company as a bellwether for corporate Bitcoin adoption.
Funding the Purchase: ATM Offering and Preferred Stock
The $1.3 billion in new capital was generated through Strategy’s active at-the-market (ATM) offering program. The company sold 6.3 million shares of its Class A common stock, yielding net proceeds of about $900 million. Additionally, it issued 3.7 million shares of its variable-rate Stretch preferred stock (ticker: STRC), raising approximately $377 million. The combined equity issuance represents a notably busy week of capital raising, highlighting the company’s established access to financial markets.
Significant Dry Powder Remains for Future Acquisitions
Despite this substantial deployment, Strategy retains considerable capacity under its existing ATM programs to fund further Bitcoin purchases. The company reports approximately $6.7 billion in available capacity for additional sales of MSTR common stock, $20.3 billion for its Strike preferred stock (STRK), and $3.2 billion for the Stretch preferred series (STRC). This extensive remaining authorization provides a flexible, ongoing pipeline for capital generation to execute its Bitcoin accumulation strategy.
Operational Flexibility Enhanced for Large Trades
In a related operational update, Strategy amended its Omnibus Sales Agreement with its syndicate of underwriters, which includes TD Securities, Barclays Capital, Morgan Stanley, and over a dozen other financial institutions. The revised terms now permit the company to appoint a second sales agent for any single class of security during pre-market and after-hours trading sessions. This change is designed to facilitate greater execution flexibility and efficiency for potential large-volume transactions that may occur outside of regular trading hours.
Disclosure: This article was edited by Vivian Nguyen. For more information on how we create and review content, see our Editorial Policy.
