**MSTR Launches $2.1B ATM Program for Strife Preferred Stock**
**Meta Description:** MSTR has initiated a $2.1 billion ATM program for its Strife preferred stock, enhancing its Bitcoin-backed financial strategy.
**URL Slug:** mstr-strife-preferred-stock-atm-program
**MSTR Launches $2.1B ATM Program for Strife Preferred Stock**
MSTR has unveiled a significant $2.1 billion At-The-Market (ATM) equity program for its Strife (STRF) preferred stock, a strategic move aimed at bolstering its long-term vision of establishing a Bitcoin-backed financial framework. This announcement was made by CEO Phong Lee during an investor update, alongside Executive Chairman Michael Saylor.
The decision to expand the fundraising strategy comes on the heels of strong performance from the firm’s Bitcoin-linked securities, Strike (STRK) and Strife (STRF). Lee noted that the year-to-date results have instilled confidence in the company’s ability to attract further investment. “We’re currently at a 16.3% BTC yield for the year, against a 25% target,” Lee stated, adding that the BTC dollar gain has reached $7.7 billion, positioning the firm toward its ambitious $15 billion target.
Both Strike and Strife have exceeded expectations since their launch. Strike has seen a 24% increase from its initial price of $80, now nearing $100, while Strife, which was priced at $85 just two months ago, is currently trading around $98.80, reflecting a 16% rise. In contrast, similar preferred stocks in the market have experienced declines of 3-5% during the same timeframe. Over the past month, Strike has surged by 17%, and Strife has risen by 12%, bringing both instruments close to their par value.
Lee highlighted the impressive liquidity of these securities, with average daily trading volumes of $31 million for Strike and $23 million for Strife, which is significantly higher than typical volumes for comparable preferreds. The company previously raised $212 million through Strike’s ATM program without facing adverse pricing pressure. Given the current trading volume and investor interest, Lee expressed optimism that the $2.1 billion Strife ATM could be executed similarly.
Strife is characterized as a perpetual preferred stock with a 10% coupon, positioned at the top of MSTR’s capital stack. Saylor referred to it as “the crown jewel” of the company’s preferred offerings, emphasizing a cautious approach to its management. “We’re going to be ten times as careful with Strife,” he remarked, aiming for it to be perceived as investment-grade fixed income with strong protections.
In contrast, Strike is tailored for “Bitcoin-curious” investors, featuring an 8% coupon and potential upside through Bitcoin conversion. Saylor likened it to a “Bitcoin fellowship with a stipend.”
MSTR currently operates three ATM programs: $21 billion each for MSTR equity and Strike, and $2.1 billion for Strife. These programs are rebalanced daily, with issuance adjusted based on market conditions, volatility, and investor demand. This dynamic structure enables the company to optimize Bitcoin acquisition and capital deployment in varying market environments. MSTR’s Bitcoin treasury now totals 576,230 BTC, approximately valued at $6 billion.
**FAQ**
**What is the purpose of MSTR’s $2.1 billion ATM program?**
MSTR’s $2.1 billion ATM program aims to raise capital through its Strife preferred stock, supporting its long-term strategy of building a Bitcoin-backed financial architecture.
