Strategy Plans $21 Billion Bitcoin Buy with New Stock Offer

Key Takeaways:

• Strategy announces a $21 billion stock offering aimed at purchasing more Bitcoin.
• Strategy maintains long-term faith in Bitcoin amidst market fluctuations.
• The move cements Strategy as the top corporate Bitcoin holder.

The enterprise software firm, now better known for its substantial Bitcoin holdings, announced on Monday its plan to sell approximately $21 billion worth of new shares to fund another round of Bitcoin purchases. The company will sell Series A shares to further accelerate acquisitions. Through the “ATM Program,” the company reaffirms its unwavering commitment to a Bitcoin-centric strategy.

The capital raise will be accomplished via an “at-the-market” (ATM) offering of shares of the company’s Series A perpetual strike preferred stock, referred to as the “ATM Program.”

Unlike traditional fundraising, an ATM offering lets a company gradually sell shares, preventing sharp price drops. This approach gives Strategy flexibility to capitalize on strong market conditions without oversupplying shares. Strategy plans to sell the shares “in a disciplined manner over an extended period,” in given market conditions, trading prices and volumes of its preferred stock, the company said in a statement. We have taken a measured approach in order to streamline the capital-raising process and to achieve the most advantageous terms for the company and its stockholders. The preferred stock’s no-fixed-repayment structure ensures long-term capital access for Strategy.

The cash which will be raised from the stock offering will be used for general corporate purposes, including an acquisition of Bitcoin and also for working capital, Strategy said in its filing with the U.S. Security and Exchange Commission (SEC). This “ATM Program” is intended to complement Strategy’s current “21/21 plan,” which is a long-term roadmap to acquire $42 billion of BTC advocating for Michael Saylor’s proposal.

On March 10th, 2025 Strategy has around 499,096 BTC worth about $41 billion. This makes Strategy the largest corporate holder of Bitcoin in the world, cementing it as a pioneer in institutional cryptocurrency adoption. As an early major Bitcoin holder, Strategy significantly contributes to Bitcoin’s market cap. With an average purchase price of $66,423 per BTC, the company remains net-positive despite market fluctuations, maintaining gains through its long-term strategy.

Recent Activity: According to a report by blockchain analytics firm Lookonchain, Strategy has bought around 52,696 BTC since Jan 13, 2025, amounting to nearly $23 billion in BTC purchases since Nov 2024. It illustrates Strategy’s consistent policy of increasing its Bitcoin allocations and its steadfast conviction in the crypto’s long-term viability. The bold buying approach demonstrates faith even in the face of $3 billion of unrealized losses on its recent purchases.

Strategy’s Bitcoin acquisitions since November 2024. Source: Lookonchain

Michael Saylor played and continues to play a major role in Strategy’s Bitcoin strategy, as well as a major vocal proponent of Bitcoin even after stepping down from the CEO position. He still touts Bitcoin’s promise to corporations and governments.

Saylor has continually urged the U.S. government to recognize Bitcoin as a strategic asset and add to the national Strategic Bitcoin Reserve. Bitcoin, he argues, safeguards financial stability by acting as an inflation hedge. By meeting with government officials and policymakers, he has educated them about the benefits of Bitcoin and advanced a favorable regulatory environment for the cryptocurrency industry. Saylor attended the White House Crypto Summit held on March 7, 2025.

Related News: MicroStrategy Raises $2 Billion to Fuel Bitcoin Spending – BTC Bull Token Holders to Benefit?

Strategy’s $21 billion Bitcoin buy sparked mixed reactions—exciting the Bitcoin community while raising concerns among analysts about its reliance on Bitcoin and aggressive borrowing. Strategy’s shares dropped about 10% following the announcement to $257.87 and have declined by a similar percentage this year. Bitcoin fell 2.4% to $81,084 and is down approximately 14% since December. Such volatility emphasizes the underlying risks of cryptocurrency investments and the need for prudent risk management.

Key to Strategy’s success will be the future price of Bitcoin, the general health of the cryptocurrency market and the company’s financial management skills. Although Strategy has been a successful strategy for generating returns in Bitcoin, past financial performance does not guarantee future results. Strategy targets a 15% yield in 2025, a sharp decline from 74% in 2024.

The latest maneuver by Strategy highlights the increasing adoption of Bitcoin (BTC) by corporations and institutions alike. Bitcoin maximalists see Strategy’s accumulation as confidence in BTC as a store of value and inflation hedge, despite high risks. Other firms, such as Metaplanet and Semler Scientific, have also added Bitcoin to their balance sheet but are currently facing losses on their BTC holdings.

The stock sale provides the company with another financial instrument to raise $42 billion in the coming years by offering investors securities in exchange for Bitcoin purchases — with an increasing focus on issuing fixed-income securities instead of relying solely on common share offerings.

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