The MSTR stock is up today as Michael Saylor’s Strategy, previously MicroStrategy, announces a new at-the-market (ATM) program, which it could use to fund new Bitcoin purchases. The stock has also climbed alongside Bitcoin, which has broken above $70,000 as Trump signaled progress in ending the U.S.-Iran war.
MSTR Stock Climbs as Strategy Plans $42 Billion ATM Program
The MSTR stock is up over 2%, rallying to a high of $140 today and now trading around $138, according to TradingView data. This comes amid Strategy’s announcement of a new $21 billion STRC and another $21 billion MSTR ATM programs.
Under this new ATM program, Strategy will be able to issue and sell additional MSTR shares at $0.001 par value per share. Furthermore, the company may issue and sell STRC shares at $0.001 pat value per share. Strategy also included the STRK stock under this latest ATM program.
It is worth noting that Saylor’s company has typically used the ATM program to sustain its Bitcoin accumulation, and so, this latest ATM program is likely to be mainly used to buy more Bitcoin. Strategy has also registered up to $15.9 billion worth of MSTR stock sales under the prior $21 billion ATM program for its common stock.
The company has also sold $20 billion and $4.2 billion of STRK and STRC shares respectively as part of the prior ATM program. Notably, Strategy is currently on a weekly streak of Bitcoin purchases that dates back to the end of last year.
Meanwhile, it is worth noting that MSTR stock is also up today, driven by Bitcoin’s rally above $70,000. BTC broke above the level following reports earlier in the day that the U.S. and Iran are having peace talks to end the war.
Strategy Announces New Bitcoin Buy
Saylor’s company further deepened its Bitcoin last week with the purchase of 1,031 BTC for $76.6 million at an average price of $74,326 per Bitcoin. It now holds 762,099 BTC, which it acquired for $57.69 billion at an average price of $75,694 per Bitcoin.
The SEC filing shows that the company solely used the MSTR stock to fund last week’s purchase. Strategy sold 509,111 MSTR shares and raised net proceeds of $76.5 billion. It still has 6.2 million shares which it can issue under the current ATM program.
The Strategy stock has seen less selling pressure in recent times as Saylor’s company begins to also rely on the STRC preferred stock to fund Bitcoin purchases. The company sold 11.8 million STRC shares and 2.8 million MSTR shares two weeks ago to fund a $1.57 BTC buy, its largest this year.
Amid these purchases, Strategy currently sits on an unrealized loss of $3.4 billion, according to DropsTab data. Its BTC portfolio is also down from a high of $78 billion, which it reached in October when Bitcoin rallied to an all-time high (ATH) of $126,000.