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MicroStrategy has announced the offering of its Series A Perpetual Stride Preferred Stock (STRD) valued at $4.2 billion. The company stated that the funds will be used to facilitate the acquisition of Bitcoin. The sale will occur through an at-the-market (ATM) program, allowing for the gradual sale of stock based on market demand and stock price.
The firm will use the raised funds for general corporate purposes, Bitcoin purchases, and possibly working capital support. This new ATM program represents a significant development in the capital market, reinforcing MicroStrategy's strategy of investing in Bitcoin.
At the end of Q2, the total value of Bitcoin in the MicroStrategy portfolio exceeded 500,000 coins. The investment in the holdings was boosted by the rise in the price of Bitcoin, which increased by approximately $82,000 to $108,000 in the first quarter ending on June 30th. During the same period, the company announced that it had increased its financing by 6.8 billion dollars through various financial instruments.
The shares of MicroStrategy (MSTR) declined by 2.72% at the start of trading on Monday, despite the company's strong quarterly results. At the same time, Bitcoin has been trading at a price above $108,000, with a daily increase of 2.21 percent. It was also noted that trading activity has skyrocketed, according to CoinMarketCap, with a 25 percent increase to reach a volume of $40 billion.
Also Read: Bitcoin Price Surges Past $109K: ETFs and New Laws Push Market Higher
MicroStrategy has not limited its fundraising activities to a single program. The firm has other sales programs, including the allocation of a $20.5 billion amount to its STRK ATM, an $18.1 billion allocation to the 2025 Common ATM, and $1.9 billion to the STRF ATM. It was a 6 percent increase in the program since it was introduced on June 11, now known as the STRD program.
This program is quite exciting because MicroStrategy can adjust its funding arrangement according to market forces. The announcement of this fact demonstrates that MicroStrategy remains committed to Bitcoin as a strategic asset. The company is also looking to increase its cryptocurrency share using fundraising methods in the market.
