Essential Insights
- Strategy aims to raise $21 billion via an at-the-market (ATM) sale of its preferred shares.
- The funds will be utilized to enhance its Bitcoin holdings.
- Investing in Strategy could yield faster returns compared to the S&P 500.
Strategy is intensifying its Bitcoin-centric approach with a new stock offering, looking to purchase additional Bitcoin following a relatively quiet phase of BTC acquisitions.
With 499,096 BTC held, valued at $86.5 billion, Strategy’s swift accumulation alongside a low P/E ratio distinguishes it in the crypto and financial realms.
Strategy Initiates Stock Offering
Strategy announced that it will offer up to $21.0 billion in 8.00% Series A Perpetual Strike Preferred Stock through an at-the-market (ATM) program. Holders can opt to convert these shares into Strategy’s Class A common stock whenever they choose.
Under the leadership of Michael Saylor, the company plans to allocate the proceeds towards corporate purposes, which include Bitcoin acquisition and working capital management.
Per the sales agreement, shares may be sold through at-the-market offerings, negotiated deals, or block trades, subject to legal allowances.
The preferred shares will be sold under a prospectus supplement filed with the U.S. Securities & Exchange Commission (SEC) on Monday as part of an automatic shelf registration statement that commenced in January 2025.
Recent BTC Purchases
The last Bitcoin acquisition by Strategy was in late February, when the company acquired 20,356 BTC for approximately $1.99 billion at an average price of $97,514 per BTC, resulting in a 6.9% year-to-date return in 2025.
In 2024, Strategy, guided by Michael Saylor, purchased 258,320 BTC.
Additionally, Strategy has finalized a $2 billion private offering of 0% convertible senior notes due 2030, with the possibility for an extra $300 million.
The notes, maturing on March 1, 2030, do not accrue interest or value. Investors can convert the assets under specific conditions before December 3, 2029, for cash, Class A stock, or a combination of both.
Investing in Strategy
As of March 10, the company, formerly known as MicroStrategy, possesses 499,096 BTC , acquired at a total cost of $33.1 billion, averaging $66,357 per BTC.
Strategy’s valuation stands at $86.5 billion ($335 per share), giving it a P/E ratio of 6.58, based on $13.14 billion in “Bitcoin revenue” projected for 2024. This indicates that recovering the investment would require just 6.5 years—remarkably low for a high-growth entity.
The P/E ratio reflects the length of time, assuming steady earnings, that a company would need to earn enough to recover its initial investment.
In late February, the S&P 500 displayed a P/E ratio of 30.68, suggesting a nearly 31-year payback period. The banking sector trades at a P/E of 13–14, making Strategy’s quicker return on investment particularly enticing as it aims to pioneer the first Bitcoin bank.
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