Strategy Inc (formerly MicroStrategy) is expanding its capital-raising capacity through new at-the-market programs.
According to the Form 8-K, the firm plans to raise up to $42 billion by selling shares of its Class A common stock (MSTR) and its Variable Rate Stretch Preferred Stock (STRC), allocating $21 billion to each through new at-the-market offering programs.
A third program allows MicroStrategy to raise an additional $2.1 billion by selling shares of its 8.00% Strike Preferred Stock (STRK). Combined, the three new ATM programs give Strategy up to $44.1 billion in fresh capital-raising capacity.
The filing comes as Strategy continues its aggressive Bitcoin acquisition strategy. Yesterday, the firm bought 1,031 BTC for roughly $76.6 million. It now holds 762,099 BTC, with unrealized losses exceeding $3.9 billion.
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Economist Peter Schiff responded to the latest purchase announcement. He pointed out that Strategy remained 4.5% underwater on last week’s buy, even after Bitcoin’s price surge.
“Further shareholder dilution to throw more good money after bad will only compound losses for shareholders and creditors,” he added.
Whether Strategy’s capital expansion accelerates its path to 1 million BTC or strains its balance sheet further may depend on how Bitcoin performs over the next three quarters.
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