Gradual and Strategic Stock Sales

According to the company, STRD shares will be sold gradually and strategically, based on current market conditions and trading volumes. The ATM sales may include block trades or negotiated transactions, depending on liquidity and investor interest.

Proceeds from these sales will be allocated to general corporate purposes, including working capital and, most notably, further Bitcoin acquisitions. Additionally, a portion of the funds may be used to pay dividends on other preferred stock series such as the 10% STRF and 8% STRK.

Temporary Pause in Bitcoin Accumulation

In a regulatory filing on July 7, Strategy revealed that it had not acquired any new Bitcoin between June 30 and July 6, marking the first pause in its buying spree over the last three months. The only prior break in accumulation occurred in early April following the Q1 earnings release.

Despite the brief pause, Strategy’s Bitcoin holdings remain substantial. The company currently holds 597,325 BTC, with an average purchase price of $70,982 per Bitcoin. This brings its total Bitcoin investment to approximately $42.4 billion, now worth over $65 billion—yielding more than $22.6 billion in unrealized gains.

This enormous stash represents more than 2.8% of Bitcoin’s total maximum supply of 21 million coins, solidifying Strategy’s position as a major institutional holder.

$6.8 Billion Raised Through Preferred Shares

During Q2, Strategy raised a total of $6.8 billion through ATM offerings of its MSTR common stock, as well as STRD, STRF, and STRK preferred shares. The capital has been utilized for both Bitcoin acquisitions and covering deferred tax liabilities.

The company also reported a remarkable $14.05 billion in unrealized digital asset gains for the quarter, accompanied by a $4.04 billion deferred tax expense.

The “42/42 Plan” Expands to $84 Billion

This latest STRD issuance is a key part of the firm’s ambitious “42/42 Plan”, which has now been doubled to $84 billion in target capital through equity and convertible note offerings by 2027. Initially set at $42 billion, the plan’s equity allocation via ATM programs has already been fully deployed, leading to this expansion.

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