Strategy’s STRK Hits Record Proceeds, Has Outperformed Bitcoin, S&P 500 Since Debut

MicroStrategy’s (MSTR) continued commitment to Bitcoin acquisition is evident in its recent activities. The company’s perpetual preferred stock, STRK, saw its largest weekly at-the-market (ATM) issuance since its February launch, raising $59.7 million. This issuance, totaling approximately 621,555 STRK shares, was immediately used to purchase more Bitcoin (BTC), as disclosed in a Monday SEC filing. With $20.79 billion still available under the STRK ATM facility, MicroStrategy demonstrates a persistent bullish stance on Bitcoin, even with the price hovering above $100,000.

This purchase brought MicroStrategy’s total Bitcoin holdings to 576,230 BTC, resulting in a 16.3% year-to-date BTC yield. This key performance indicator (KPI) highlights the growth in Bitcoin exposure per share. The recent STRK issuance accounts for nearly 9% of the total proceeds generated from the ATM program for common stock, which has raised $705.7 million to date, signifying STRK’s increasing importance in MicroStrategy’s Bitcoin acquisition strategy.

STRK offers an 8% annual dividend based on a $100 per share liquidation preference, yielding an effective 8.1% annually. This yield is inversely correlated to the STRK share price; higher prices lead to lower yields and vice-versa. Since its launch on February 10th, STRK has outperformed both Bitcoin (up 10%) and the S&P 500 (down 2%), rising by 16%.

Interestingly, STRK demonstrates the lowest correlation (44%) with MSTR common stock. Conversely, it exhibits stronger correlations with Bitcoin (71%) and the SPY ETF (72%), suggesting a unique investment profile. This hybrid nature, combining preferred equity with Bitcoin-tied capital deployment, potentially attracts investors seeking diversified exposure. The substantial Bitcoin purchases, coupled with the success of the STRK ATM program, underscore MicroStrategy’s unwavering belief in Bitcoin’s long-term potential.