Strategy Announces $4.2 Billion ATM Program for Sale of 10.00% Series A Perpetual Stride Preferred Stock

Strategic Insights -

Strategy, a leading provider of strategic solutions, has announced a sales agreement for its 10.00% Series A Perpetual Stride Preferred Stock, with an aggregate offering price of up to $4.2 billion. The company plans to use the net proceeds from the ATM Program for general corporate purposes, including the acquisition of bitcoin and working capital, as well as to pay dividends to holders of its preferred stock. This strategic move aims to provide the company with the necessary funding to drive growth and innovation.

Key Takeaways:

  • Strategy has entered into a sales agreement to sell up to $4.2 billion worth of 10.00% Series A Perpetual Stride Preferred Stock.
  • The company intends to use the net proceeds from the ATM Program for general corporate purposes, including the acquisition of bitcoin and for working capital.
  • Strategy may also use the net proceeds to pay dividends to holders of its 10.00% Series A Perpetual Strife Preferred Stock and 8.00% Series A Perpetual Strike Preferred Stock.
  • The STRD Stock may be sold by agents through an "at the market offering" or other methods permitted by law, including negotiated transactions or block trades.
  • The sale of STRD Stock under the ATM Program is offered pursuant to a prospectus supplement filed with the SEC on July 7, 2025, under an existing automatic shelf registration statement (File No. 333-284510).

Statistics:

  • Aggregate offering price of up to $4.2 billion for the 10.00% Series A Perpetual Stride Preferred Stock.
  • Net proceeds from the ATM Program to be used for general corporate purposes, including the acquisition of bitcoin and working capital.
  • Company may use up to $1.124 billion for payment of dividends to holders of its 10.00% Series A Perpetual Strife Preferred Stock and 8.00% Series A Perpetual Strike Preferred Stock.
  • Prospectus supplement filed with the SEC on July 7, 2025.
  • Automatic shelf registration statement became effective on January 27, 2025 (File No. 333-284510).

Sources:

  • Strategy, press release, dated July 7, 2025.
  • Securities and Exchange Commission, automatic shelf registration statement, dated January 27, 2025 (File No. 333-284510).