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Strategy (previously Microstrategy) has announced the launch of a $2.1 billion At-The-Market (ATM) equity program for its preferred stock, Strife (STRF). This initiative marks another step in the firm’s long-term goal to establish a robust Bitcoin-backed financial infrastructure.
Strategy Reports Strong Performance
The announcement was made by CEO and President Phong Lee during an investor update alongside Executive Chairman Michael Saylor. Lee highlighted the strong year-to-date performance of the firm’s Bitcoin-linked securities, Strike (STRK) and Strife, as a driving factor behind this expansion.
“We’re currently at a 16.3% BTC yield for the year, against a 25% target,” he explained. The company has achieved a BTC dollar gain of $7.7 billion so far, putting it on track to reach its ambitious $15 billion target.
Both Strike and Strife have exceeded expectations since their launch. Strike has appreciated 24% from its initial price of $80 to nearly $100, while Strife, which was priced at $85 just two months ago, now trades around $98.80, reflecting a 16% increase.
In contrast, similarly structured preferred stocks in the market have seen declines of 3-5% during the same period. Notably, in the last 30 days alone, Strike rose by 17% and Strife by 12%, bringing both instruments close to par value.
Lee emphasized the liquidity of these instruments, pointing to impressive average daily trading volumes of $31 million for Strike and $23 million for Strife. “That’s 60 times what we typically see in comparable prefereds,” he noted.
The company had previously issued $212 million through Strike’s ATM program without experiencing adverse pricing pressure. Given the strong trading volume and investor demand, Lee expressed confidence that the $2.1 billion Strife ATM could be executed similarly.
Bitcoin Holdings At Core
Strife is characterized as a perpetual preferred stock with a 10% coupon, positioned at the top of Strategy’s capital stack. Saylor referred to it as “the crown jewel” of the company’s preferred offerings, emphasizing the importance of careful management.
“We’re going to be ten times as careful with Strife,” Saylor stated, aiming for it to be perceived as investment-grade fixed income, complete with robust protections.
In contrast, Strike is designed for “Bitcoin-curious” investors and offers an 8% coupon with potential upside through Bitcoin conversion. Saylor likened it to a “Bitcoin fellowship with a stipend,” catering to a different risk profile.
Strategy now operates three ATM programs: $21 billion each for MicroStrategy (MSTR) equity and Strike, and $2.1 billion for Strife. These programs are rebalanced daily, allowing the company to adjust issuance based on market conditions, volatility, and investor appetite.
According to Saylor, this dynamic structure enables the optimization of Bitcoin acquisition and capital deployment across fluctuating market environments.
At the heart of this strategy is Strategy’s significant Bitcoin treasury, which currently totals 576,230 BTC, valued at approximately $60 billion. “That permanent capital is the foundation for everything we’re building,” Saylor remarked.
At the time of writing, BTC trades at $109,750.
Featured image from DALL-E, chart from TradingView.com
