- Saylor eyes $21B capital raise through selling of STRK preferred stock.
- Strategy’s unrealized profit on the BTC stash has dropped from $20B to $7B.
Michael Saylor announced a bold plan for Strategy (formerly MicroStrategy) to sell $21B preferred stock issuance (STRK) for Bitcoin buys and corporate operations. In an X post on the 10th of March, Saylor said,
“Strategy announces $21 Billion $STRK At-The-Market program $MSTR.”
The pioneer in BTC corporate strategy has been aggressively buying Bitcoin [BTC] through stock issuance and debt (convertible notes).
For stock issuance, the firm leverages its common MSTR and preferred STRK stocks to raise capital for BTC investment.
That said, the firm could scoop relatively discounted BTC after a recent retracement if the latest capital raise is achieved.
As of early March 2025, Strategy had 499,096 BTC, worth $40B at current prices and 2.3% control of total supply.
Saylor’s BTC plan elicits mixed reactions
Note, however, that the BTC drawdown in Q1 2025 has slashed Strategy’s unrealized profit by 3x. At the peak of February, when BTC jumped to $109K, Strategy’s unrealized profit almost hit $20B.
At press time, the profit shrunk to $7.2B, but the firm remains bullish for the long run.
Source: CryptoQuant
For his part, Peter Schiff downplayed Strategy’s capacity to raise such a massive amount given muted BTC price action. Schiff retorted,
“I don’t think you will be able to pull this off. Soon $MSTR will be trading at a discount to its Bitcoin holdings. That means selling these shares will produce a negative Bitcoin yield.”
However, Jesse Myers, co-founder of OnRamp Bitcoin, claimed that STRK stock issuance could offer Strategy an efficient capital raising from the bond market. He said,
“$21B could be just the start for this STRK “ATM program.” Congrats to Saylor and Shirish Jajodia for creating an even more efficient vehicle for converting SoV capital into Bitcoin monetary energy.”
On the price performance front, MSTR had dropped 56% to the last U.S. election level of $240, a trend observed across most U.S. equities.
Over the same period, BTC has fallen about 30%, with analysts noting that it is a standard pullback for the cryptocurrency during bull runs.
Source: MSTR vs. BTC performance, TradingView
Meanwhile, BTC dipped below $80K, but was above the level ahead of key U.S. economic data. Whether BTC will reverse Q1 losses and offer a relief recovery for MSTR remains to be seen.
