Strategy ATM equity program expands $42B as DATs recover

Digital Asset Treasuries (DATs) are recovering from 2025’s discounting pressure, as equity and financing conditions improve. The standout update is the Strategy ATM equity program expansion to $42 billion, signaling renewed confidence in crypto treasury models. Strategy’s plan is split into $21 billion of Variable Rate Series A Perpetual Stretch Preferred Stock (STRC/STRF series referenced) and $21 billion of Class A common stock, alongside a separate $2.1 billion ATM for STRK preferred stock (replacing an earlier, underutilized STRK program). Intermediaries (Moelis & Company, A.G.P./Alliance Global Partners, StoneX Financial) will sell shares gradually over time. The company also continues accumulating Bitcoin under its long-term “42/42” plan. Reports say Strategy bought an additional 1,031 BTC for about $76.6 million, bringing holdings to 762,099 BTC. Total acquisitions are cited at roughly $57.7 billion, though analysts note the position is currently unprofitable with unrealized losses above $3.2 billion. DATs’ broader playbook includes share repurchases, staking, DeFi exposure, and (for some firms) restaking. Strategy’s capital flexibility is expected to support additional BTC purchases through 2027, but it also creates potential dividend and cash-flow constraints if the full ATM capacity is utilized. Analyst Ivan Wu estimates STRC could add about $2.4 billion in annual dividend obligations, limiting coverage to roughly eight months even after combining with existing payouts. Net: the Strategy ATM equity program expansion may boost near-term sentiment and BTC demand expectations, while reminding traders to monitor dilution/dividend risks.