Strategy Keeps $21 Billion ATM Program Available for Future Bitcoin Purchases
Strategy, an equity-financing company, has maintained access to a potentially large funding channel worth $21 billion that could support future Bitcoin purchases. This financing capacity was established through its at-the-market (ATM) program, which allows it to sell up to $21 billion of Class A common stock.
The ATM program's prospectus annex lists various possible uses for the proceeds, including buying Bitcoin, preferred-stock dividends, working capital, and other corporate purposes. However, the company did not use this channel during the week ended September 20, instead funding its purchase of 950 BTC with cash.
The purchase lifted Strategy's holdings to 846,000 BTC as of September 20, at an average acquisition price of $75,416 per BTC. The total cost of the Bitcoin was $63.80 billion. In addition to buying Bitcoin, Strategy also used some of its USD Cash to repurchase preferred shares.
The company's ability to tap into this large funding channel is significant for investors, as it represents potential financing capacity and not completed fundraising.