MicroStrategy (MSTR) has launched a $2.1 billion At-The-Market (ATM) equity program for its Strife (STRF) preferred stock, reinforcing its long-term vision to develop a Bitcoin-backed financial ecosystem. The announcement was made by CEO Phong Lee during an investor update alongside Executive Chairman Michael Saylor, highlighting the firm’s confidence in its Bitcoin-linked securities following strong year-to-date performance.
Key Highlights of the ATM Program
- BTC Yield: 16.3% YTD, targeting 25% by year-end.
- BTC Dollar Gain: $7.7 billion achieved, with a $15 billion goal.
Instrument Performance:
- Strike (STRK): Up 24% ($80 → $100).
- Strife (STRF): Up 16% ($85 → $98.80), outperforming comparable preferreds (-3% to -5%).
- Liquidity: Daily trading volumes average $31M (Strike)** and **$23M (Strife)—60x higher than peers.
👉 Explore Bitcoin-backed financial instruments
Strategic Positioning of Strife and Strike
Strife (STRF): The "Crown Jewel"
- Perpetual preferred stock with a 10% coupon.
- Positioned at the top of MicroStrategy’s capital stack.
- Designed as investment-grade fixed income with robust investor protections.
Strike (STRK): For Bitcoin-Curious Investors
- 8% coupon + Bitcoin conversion upside.
- Functions like a "Bitcoin fellowship with a stipend," per Saylor.
Dynamic Capital Deployment
MicroStrategy manages three ATM programs:
- $21B for MSTR equity.
- $21B for Strike.
- $2.1B for Strife.
Daily rebalancing ensures optimal Bitcoin acquisition and capital allocation based on market conditions. The firm’s Bitcoin treasury—576,230 BTC (~$60B)—serves as the backbone of this strategy.
FAQs
Q: How does Strife differ from Strike?
A: Strife offers higher stability (10% coupon), while Strike provides Bitcoin exposure (8% coupon + conversion upside).
Q: What’s the long-term goal for MicroStrategy’s Bitcoin holdings?
A: To build a permanent capital base for a Bitcoin-centric financial architecture.
Q: Are these instruments affected by Bitcoin ETF competition?
A: No—they cater to niche investor needs beyond direct price exposure.
👉 Learn more about Bitcoin investment strategies
Conclusion
MicroStrategy’s latest $2.1B Strife ATM underscores its commitment to Bitcoin innovation, combining yield-generating securities with strategic BTC accumulation. This approach positions MSTR as a unique player bridging traditional finance and the digital asset economy.
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