Strategy Reports 30% Bitcoin Gain, Launches $4.2 Billion ATM Program

Strategy, a prominent player in the digital asset space, reported a significant unrealized gain of $14.05 billion on its digital assets during the second quarter. This substantial gain elevated the carrying value of its bitcoin holdings to $64.36 billion. The company's bitcoin holdings, which exceed 500,000 coins, benefited from a roughly 30% increase in the price of bitcoin, which rose from around $82,000 to $108,000 during the three months ended June 30.

In addition to the impressive gains, Strategy announced a new $4.2 billion at-the-market (ATM) program for its STRD preferred series of stock. The proceeds from this offering are intended to fund additional bitcoin purchases, supporting the company's strategic investment in the cryptocurrency. This move underscores Strategy's commitment to leveraging its financial resources to capitalize on the growing value of bitcoin.

During the second quarter, Strategy raised $6.8 billion in net proceeds through various capital markets activities. These activities included preferred stock offerings and at-the-market sales of class A common stock. As of June 30, the company retained significant capacity for future issuances, with $18.1 billion remaining under the 2025 Common ATM, $20.5 billion under the STRK ATM, and $1.9 billion under the STRF ATM. This financial flexibility positions Strategy to continue its aggressive investment strategy in the digital asset market.

The announcement of the $4.2 billion ATM program for STRD preferred stock is a strategic move by Strategy to ensure it has the financial resources to continue acquiring bitcoin. The company plans to sell STRD stock over time, taking into account the trading price and volumes at each sale. The proceeds from this ATM program are earmarked for general corporate purposes, including acquiring bitcoin, supporting working capital needs, and potentially paying dividends to holders of its preferred stock.

Strategy's aggressive investment in bitcoin and its strategic use of capital markets to fund these investments highlight the company's confidence in the long-term value of digital assets. The significant unrealized gains and the new ATM program demonstrate Strategy's proactive approach to capitalizing on market opportunities and strengthening its position in the digital asset space. As the price of bitcoin continues to rise, Strategy's investments are likely to yield even greater returns, further solidifying its leadership in the industry.