The strategy plans to sell $4.2 billion of preferred STRD shares to increase the purchase of Bitcoin.

Strategy has entered into a sales agreement for the issuance and offering of 10% Series A Perpetual Stride Preferred Stock (STRD) with a total value of up to 4.2 billion dollars through the market price trading program (ATM).

The company announced that the plan to sell perpetual preferred shares STRD through the ATM program will be implemented gradually and strategically, depending on market price and trading volume at the time of sale. The sales may include both negotiated transactions or bulk trades.

According to the statement made on Monday, the company intends to use the funds raised from this offering for general corporate purposes, including purchasing additional Bitcoin and supplementing working capital.

The strategy also indicated that a portion of the net income could be used to pay dividends for the 10% Series A Perpetual Strife and 8% Series A Perpetual Strike Preferred Stock.

Pause Bitcoin purchase chain

On Monday, Strategy revealed that the company has paused its Bitcoin buying spree that lasted for the past 3 months. According to the 8-K filing submitted to the (SEC), the company did not purchase any additional Bitcoin from June 30 to July 6.

Currently, Strategy is holding a total of 597.325 BTC – worth over 65 billion dollars, purchased at an average price of 70,982 dollars, equivalent to a total cost of about 42.4 billion dollars ( including fees and related expenses ), according to a share from Michael Saylor, co-founder and executive chairman of the company.

This holding accounts for over 2.8% of the total supply of 21 million BTC and brings an estimated profit of ( on paper ) of about 22.6 billion dollars.

The suspension of Bitcoin purchases last week marks the first time that the Strategy has not bought more BTC since the period from March 31 to April 6 - coinciding with the company's announcement of its Q1 financial results on April 7, with an unrealized loss of up to $5.91 billion on the amount of Bitcoin held.

Continuing this trend, Strategy announced its Q2 results on Monday, reporting unrealized gains from digital assets of $14.05 billion, while also noting related deferred tax expenses of $4.04 billion.

In recent weeks, Strategy has used the funds obtained from selling Class A common stock (MSTR) under the ATM program, as well as from the issuance of perpetual preferred stock Strike (STRK) and Stride (STRD) to finance Bitcoin purchases. According to the disclosed records, in the quarter ending June 30, the company generated a total of $6.8 billion in net proceeds from these sales.

The ATM programs related to the preferred stocks STRK, STRF, and STRD are being implemented alongside the "42/42" plan of Strategy – a strategy to raise a total of $84 billion from the issuance of stocks and convertible bonds to buy Bitcoin from now until 2027. This plan has been scaled up from the original "21/21" worth $42 billion, in which the ATM program on the stock side has recently run out of funds.

According to data from TradingView, MSTR stock is currently down 1.3% in pre-market trading on Monday.

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