The attractiveness of issuing common stock through ATM has dropped, and the strategy has shifted to preferred stock financing.

Gate News bot message, in the past two weeks, Strategy (MSTR) has not utilized its common stock market price stock plan (ATM) to purchase Bitcoin, but instead chose to use it for its two perpetual preferred stocks.

This choice likely reflects that the premium between the company’s stock price and its market value multiple net asset value (mNAV) (which reflects the difference between its market value and Bitcoin holdings) is narrowing, allowing the Strategy to raise funds to purchase more Bitcoin without diluting shareholders’ stakes.

When the stock price is close to the value of Bitcoin’s underlying asset, the attractiveness of issuing common shares through ATMs decreases. This type of issuance is usually only advantageous if the premium is higher.

Strategy recently increased its holdings by 1,045 Bitcoins, with the funds coming from the earnings of its two perpetual preferred stocks ATM: the yield from STRK issuance is 59.18%, and the yield from STRF issuance is 40.82%. This gives the company greater flexibility, allowing it to continue to accumulate Bitcoins while leaving room for appreciation for common stock investors.

Analyst Jeff Walton stated that there is another factor at play. Although the benchmark US 10-year Treasury yield has remained relatively stable at around 4.5%, the actual dividend yield of STRK and STRF has steadily declined from about 10%. This is because the dividend yield decreases as the stock price rises, and this bond-like behavior makes preferred stocks more attractive in a stable interest rate environment.