How to Announce an ATM Without Tanking Your Stock
ATM announcements trigger selling by default. Here's the IR playbook for framing dilution as accretion — because when done right, that's exactly what it is.
The Problem
When a Bitcoin treasury company announces an at-the-market equity offering, the default retail investor reaction is to sell. The word "dilution" triggers an emotional response that overwhelms the actual math. Shares drop 3-8% on the announcement, and the company spends the next week trying to recover — often with no proactive communication at all.
This is an IR failure, not a market failure.
Why ATMs Are Misunderstood
An ATM program is a shelf registration that allows a company to sell shares incrementally into the open market over time. Unlike a secondary offering (which dumps a large block at once), ATMs give management precise control over timing and pace.
For Bitcoin treasury companies trading at an mNAV above 1.0x, ATM issuance is mathematically accretive to existing shareholders. Every share sold at a premium to net asset value increases the BTC backing per remaining share. The company is essentially buying Bitcoin at a discount funded by the market's willingness to pay a premium.
This is a good thing for shareholders. But if your press release doesn't explain it, investors will assume the worst.
The Playbook
1. Lead with the accretion framework
Your press release headline should not be "Company X Announces $500M ATM Program." It should frame the strategic purpose: "Company X Establishes $500M ATM Facility to Accelerate BTC Accretion at Current Premium Valuations."
In the body, include a clear explanation of how ATM issuance at premiums above 1.0x mNAV increases BTC per share. Use a simple table showing the before and after at various deployment levels.
2. Provide guardrails
Investors want to know you won't dump shares irresponsibly. State your discipline: "Management intends to utilize the ATM facility opportunistically when market conditions support accretive issuance, with a focus on maintaining or increasing BTC per diluted share."
3. Show your track record
If this isn't your first ATM, include data on how prior programs were executed. What was the average mNAV at which shares were sold? What was the resulting BTC yield? This builds confidence that management has discipline.
4. Publish a supplemental FAQ
Within 24 hours of the filing, publish an investor FAQ on your IR page addressing the obvious questions: How dilutive is this? When will you use it? How does this compare to convertible debt? What's the impact on BTC per share?
5. Get your CEO on record
A brief video or audio clip from the CEO explaining the rationale in plain language goes further than any press release. Retail investors respond to faces and voices, not legalese.
The Standard
Strategy does this better than anyone. Their ATM announcements include full accretion math, BTC yield context, and a consistent framework that investors have learned to trust. The result: their stock often rises on ATM announcements because the market understands the playbook.
That's not because Strategy is special. It's because their IR is excellent. Any Bitcoin treasury company can achieve this — it just requires treating every capital markets event as an investor education opportunity.