MicroStrategy Adjusts Share Issuance Policy and Launches $4.2 Billion STRD Stock Offering to Support Bitcoin Strategy

MicroStrategy, led by Michael Saylor, has revised its policy to allow for the issuance of shares below 2.5 times modified net asset value (mNAV), except for paying interest and dividends. This change comes after a drop in mNAV. The company, which is the world's largest corporate holder of Bitcoin with a $73 billion BTC treasury, now plans to dilute MSTR shares between 1x and 2.5x of mNAV when deemed necessary. The company's mNAV has been maintained above 1 due to investor confidence in non-dilutive strategies for acquiring Bitcoin. However, recent dilution to buy more BTC has reduced mNAV, with the multiple halving since November 20, 2024. MicroStrategy's CEO, Saylor, has added a third, vague possibility for increasing MSTR supply, aiming to provide greater flexibility. Today, MSTR stock is down by 4%.

On July 7, 2025, MicroStrategy Incorporated, also known as Strategy and traded on Nasdaq under symbols MSTR, STRK, STRF, and STRD, announced the launch of an At-The-Market (ATM) program to offer up to $4.2 billion worth of its 10.00 Series A Perpetual Stride Preferred Stock (STRD Stock). The announcement took place in Tysons Corner, Virginia. Under this program, MicroStrategy can issue and sell shares of its STRD stock in a disciplined manner over an extended timeframe, adjusting sales according to trading prices and volumes at the time. The shares have a par value of $0.001 each.

The proceeds from the ATM program are intended for general corporate purposes, including the acquisition of bitcoin to strengthen its Bitcoin treasury holdings, working capital, and potentially the payment of dividends to holders of both the 10.00 Series A Perpetual Stride Preferred Stock and the 8.00 Series A Perpetual Strike Preferred Stock. The STRD shares may be sold in various ways permitted by law, such as negotiated transactions or block trades, complying with Rule 415(a)(4) under the Securities Act of 1933. The offering is being conducted under a prospectus supplement filed with the Securities and Exchange Commission (SEC) on July 7, 2025, as part of the company’s existing automatic shelf registration statement that became effective on January 27, 2025.

MicroStrategy identifies itself as the world’s first and largest Bitcoin Treasury company, emphasizing its operational expertise, strategic Bitcoin reserve, and commitment to technological innovation. The company positions itself as a leader in both the digital asset realm and enterprise analytics, offering long-term value creation opportunities. This significant capital raising initiative underscores MicroStrategy's enhanced focus on expanding its Bitcoin holdings and reinforcing corporate liquidity and shareholder value.

On July 7, 2025, MicroStrategy Incorporated (dba Strategy), listed on Nasdaq under the symbols MSTR, STRK, STRF, and STRD, announced the commencement of an at-the-market (ATM) sales program for its 10.00 Series A Perpetual Stride Preferred Stock (STRD Stock) with an aggregate offering price of up to $4.2 billion. The ATM program allows MicroStrategy to issue and sell shares of STRD Stock in a disciplined manner over an extended period, based on the prevailing trading price and volumes of the shares. Sales under this program may be conducted through various methods that qualify as at-the-market offerings, including negotiated transactions or block trades, and subject to applicable securities laws and regulations.

The net proceeds from this ATM program are intended for general corporate purposes such as acquiring additional Bitcoin, supporting working capital needs, and potentially paying dividends to holders of its 10.00 Series A Perpetual Stride Preferred Stock as well as its 8.00 Series A Perpetual Strike Preferred Stock. This offering is made pursuant to a prospectus supplement filed with the U.S. Securities and Exchange Commission (SEC) on July 7, 2025, under the company's effective automatic shelf registration statement (File No. 333284510), originally effective January 27, 2025.

MicroStrategy positions itself as the world’s first and largest Bitcoin Treasury company, combining operational excellence, substantial Bitcoin reserves, and technological innovation to maintain leadership in both digital assets and enterprise analytics sectors. The company also holds the 11th largest U.S. corporate treasury with Bitcoin holdings rivalling large cash reserves, highlighting the significance of this capital raising in expanding its Bitcoin strategy and corporate flexibility. The press release explicitly states that it does not constitute an offer or solicitation for sale in jurisdictions where such actions would be unlawful prior to proper registration or qualification.

This strategic capital raise through the $4.2 billion ATM STRD stock sale reflects MicroStrategy’s ongoing commitment to enhancing its Bitcoin portfolio and strengthening its financial position to leverage growth opportunities within the digital asset industry.

In recent developments, MicroStrategy, which has rebranded as Strategy, has maintained its aggressive Bitcoin acquisition strategy, recently purchasing an additional $530 million worth of Bitcoin. This move marks the 11th consecutive week of Bitcoin purchases by the company's leadership, spearheaded by Michael Saylor, underscoring MicroStrategy's commitment to building the world's largest corporate Bitcoin treasury. As of June 2025, MicroStrategy holds approximately 592,345 Bitcoins, equivalent to nearly all its assets, cementing its position as the world’s largest corporate holder of the digital asset.

Alongside its continued Bitcoin purchases, MicroStrategy has expanded its capital-raising efforts with the launch of the 10.00% Series A Perpetual Stride Preferred Stock (STRD). The STRD shares are priced at $85 each and offer a 10% annual dividend, providing investors with a fixed-income yield tied indirectly to Bitcoin price appreciation through the company's Bitcoin treasury. The offering is projected to raise a net amount of about $980 million before fees, which will be used directly to buy additional Bitcoins, further increasing MicroStrategy’s holdings.

Key distinctive features of the STRD include its noncumulative dividend structure, which depends on quarterly board approval and reflects the company’s financial health impacted by Bitcoin’s price volatility. STRD shareholders gain exposure to Bitcoin without the custody and security risks of holding the cryptocurrency directly. Moreover, STRD has no voting rights or equity gain upside, but offers a fixed income floor, perpetual structure, and no maturity or redemption risk unless repurchased by the company.

Investors face risks due to dividend volatility amid Bitcoin’s price swings and new accounting standards introduced by the Financial Accounting Standards Board (FASB). In Q1 2025, MicroStrategy reported an unrealized Bitcoin loss of $5.9 billion, highlighting the cryptocurrency’s impact on the company’s balance sheet and dividend sustainability. Despite this, demand for STRD remains high, attracting institutional investors like hedge funds and ETFs.

Market activity shows robust options trading for MicroStrategy (ticker MSTR) with 645,450 contracts traded on June 30, 2025, and an open interest of 2.56 million contracts, 103.53% above the 30-day average. These options reflect market expectations and hedging activities surrounding MicroStrategy’s stock price influenced heavily by its Bitcoin strategy.

MicroStrategy’s ongoing plan, the 2121 Plan, aims to raise up to $4.2 billion by 2027 through continued preferred stock issuances. This strategy is designed to stabilize its capital structure and finance its Bitcoin accumulation, further linking the company’s financial performance to Bitcoin’s price movements. MicroStrategy’s approach represents a unique blend of cryptocurrency investment and corporate finance, offering investors income opportunities with asymmetric upside potential amid significant market risks.