Strategy Reveals $4.2 Billion Stock Sale After Missing First Weekly Bitcoin Buy in 3 Months

Leading Bitcoin treasury firm Strategy did not purchase Bitcoin this week, ending a string of weekly purchases that extended  to April 14.

“Some weeks you just need to HODL,” Strategy Chairman and co-founder Michael Saylor posted on X (formerly Twitter) on Sunday night, foreshadowing the company’s plans to stand pat on Monday. 

The firm, which has now amassed a treasury of nearly $65 billion worth of Bitcoin, added nearly $7 billion of the top crypto asset during Q2 according to its most recent 8-K filing.

Yet Saylor, who typically trumpets the company’s buys on Monday mornings, announced a new $4.2 billion at-the-market program for its preferred stock offering STRD. 

The Strategy Chairman previously called its STRD preferred stock the “fourth gear” of the company’s Bitcoin engine, an offering which provides investors with high-yield but less sensitivity to the price of Bitcoin. 

“Stride is long-duration, high-yield, over-collaterilized preferred stock,” Saylor said in an investor presentation, which indicated that Stride is targeting “yield-focused” investors that want high-yield with collateral coverage. 

Strategy, formerly known as MicroStrategy, netted nearly $1 billion from the sale of STRD in early June. 

It maintains two other preferred stock offerings, STRK and STRF, which offer various features and benefits like different dividends and redemption features. 

The company uses the proceeds from the sales to buy more Bitcoin. 

With nearly 600,000 Bitcoin now in its treasury, Strategy holds more than 2.8% of the total Bitcoin supply. The firm reported an unrealized gain or Bitcoin appreciation of $14.05 billion in Q2. 

Bitcoin was recently down 0.7% on the day to $108,110 and now stands to gain around 2.3% in the last month. 

Shares of MSTR aligned with leading indices on Monday, down around 0.75% to $400.96. It has gained nearly 39% year-to-date.