Strategy to Raise $21B in Stock Sales for Bitcoin Purchases, MSTR Drops 17%

Highlights:

• Strategy plans to raise $21 billion by issuing 8% Series A Perpetual Strike Stock.
• The company aims to buy more Bitcoin as part of its 21/21 Plan for acquisitions.
• MSTR stock falls over 5% after Bitcoin acquisitions and a lower BTC yield target.

Michael Saylor’s company, Strategy (formerly MicroStrategy), the largest public corporate holder of Bitcoin plans to raise $21 billion by issuing 8% Series A Perpetual Strike Preferred Stock (STRK), according to a Monday filing with the SEC. The funds will be used for general corporate purposes, including acquiring more Bitcoin.

https://twitter.com/saylor/status/1899068491409260639?ref_src=twsrc%5Etfw

Strategy to Sell Preferred Stock Gradually Through ATM Program

Strategy plans to sell its perpetual strike preferred stock slowly over time through the at-the-market (ATM) Program instead of selling everything at once. Before each sale, the company will check the stock’s price and trading activity to choose the best time to sell. This method helps avoid big price changes. 

This update comes just a week after Strategy disclosed that it was unable to purchase Bitcoin the previous week. This was unusual since the company has been buying Bitcoin almost every week since the start of the year. Currently, Strategy holds 499,096 BTC ($41.2 billion), acquired for a total of $33.1 billion at an average price of $66,423 per BTC.

Strategy Takes Steps to Buy More Bitcoin with 21/21 Plan

Strategy is taking another step to buy more Bitcoin for its treasury. In the past, the company has used loans and stock sales to raise money for Bitcoin purchases. Executive Chairman Michael Saylor strongly supports Bitcoin as a treasury asset. Earlier this year, Strategy shared a plan to raise $2 billion by selling stocks to buy more Bitcoin as part of its 21/21 Plan.

The 21/21 Plan is Strategy’s plan to raise $42 billion in three years. This includes $21 billion from stocks and $21 billion from loans or bonds. The goal is to use this money to buy more Bitcoin and strengthen its position as the largest company holding Bitcoin.

Michael Saylor also encourages the U.S. government to expand its Strategic Bitcoin Reserve by acquiring 25% of Bitcoin’s supply or increasing its holdings from 200,000 to 525,000 BTC. Strategy’s Bitcoin approach paved the way for increased BTC adoption by traditional finance firms like Elon Musk’s Tesla and Japan’s Metaplanet.

Bitcoin Acquisitions and Updated BTC Yield Target

In 2025, Strategy has announced six Bitcoin acquisitions, purchasing 52,696 BTC since January 13. Its year-to-date BTC yield stands at 6.9%, with Bitcoin priced at $78,481.

Strategy’s BTC yield (the change in the ratio between its Bitcoin holdings and total shares) was 74% last year. In 2025, the company expects to reach a BTC yield target of 15% because it plans to buy more Bitcoin and issue more shares. When more shares are added, the percentage of Bitcoin compared to shares gets smaller, which leads to a lower yield.

The MSTR stock price didn’t rise after the announcement and is now around $237, down more than 17% in pre-market trading. The stock has dropped over 29% in the past month.