In a significant move that underscores its commitment to Bitcoin-backed financial innovation, MicroStrategy (MSTR) has announced a $2.1 billion At-The-Market (ATM) equity program for its Strife (STRF) preferred stock. This strategic expansion comes as Bitcoin continues its historic rally above $110,000, amplifying the potential impact of this offering.
Strategic Expansion of Bitcoin-Backed Securities
The announcement, made by Strategy CEO Phong Lee alongside Executive Chairman Michael Saylor, reveals impressive performance metrics for the company’s Bitcoin-linked securities:
- Strike (STRK): 24% increase from $80 to $100
- Strife (STRF): 16% gain from $85 to $98.80
- Daily trading volumes: $31M for Strike, $23M for Strife
Strife: The ‘Crown Jewel’ of Strategy’s Offerings
Strife represents a significant evolution in Strategy’s financial architecture, featuring:
- 10% coupon rate
- Perpetual preferred stock structure
- Top position in Strategy’s capital stack
- Investment-grade fixed income targeting
Bitcoin Treasury Foundation
Strategy’s Bitcoin holdings now total 576,230 BTC, valued at approximately $60 billion. This substantial treasury serves as the foundation for the company’s expanding financial products ecosystem, aligning with broader trends in Bitcoin institutional adoption.
Market Impact and Future Outlook
The company operates three distinct ATM programs:
- $21B MSTR equity program
- $21B Strike program
- $2.1B Strife program
Frequently Asked Questions
What is the Strife preferred stock offering?
Strife is a perpetual preferred stock with a 10% coupon rate, designed as an investment-grade fixed income instrument backed by Strategy’s Bitcoin holdings.
How does Strike differ from Strife?
Strike offers an 8% coupon with Bitcoin conversion potential, targeting ‘Bitcoin-curious’ investors, while Strife focuses on stable, fixed-income returns.
What is the significance of Strategy’s Bitcoin treasury?
The 576,230 BTC treasury provides fundamental backing for Strategy’s financial products and represents one of the largest corporate Bitcoin holdings globally.
