At-the-market offering (ATM)
A securities offering in which a listed company sells new shares gradually into the open market at prevailing prices through a broker, rather than in a single priced deal.
Also called: ATM program, ATM offering, equity distribution program
An at-the-market offering, usually called an ATM, allows a public company to issue shares over time under an existing shelf registration. The company signs an equity distribution agreement with one or more sales agents, sets a maximum dollar amount, and then sells shares on the exchange when and in the amounts it chooses.
ATMs are cheaper and more flexible than traditional follow-on offerings because there is no roadshow or large discount to the market price. They do dilute existing holders, and heavy daily issuance can weigh on the share price. Disclosure of shares sold typically comes in periodic filings, so investors track ATM usage to understand dilution and the pace of capital raising.
ATMs became central to digital asset treasury companies, which use proceeds to buy crypto when their stock trades above net asset value. Example: a company files a $2 billion ATM and sells shares on days with strong liquidity, using the cash to fund acquisitions or operations.
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Part of the BlockWest Glossary, plain-language definitions for markets, AI and digital assets. Educational content, not investment advice.