MicroStrategy, a leading Bitcoin-focused firm under the direction of Michael Saylor, has unveiled its “21/21 Plan” with the ambitious goal of raising $42 billion over the next three years to bolster its Bitcoin reserves. This move underscores the company’s strong commitment to Bitcoin despite recent market volatility.
According to this plan, MicroStrategy will raise $21 billion through equity financing and another $21 billion through fixed-income securities. CEO Phong Le stated that this substantial capital will be allocated to further Bitcoin purchases, reinforcing the company’s strategy of maximizing returns from this digital asset.
“As a Bitcoin Treasury Company, we plan to use the additional capital to buy more bitcoin as a treasury reserve asset in a manner that will allow us to achieve higher BTC Yield,” said Phong Le, president and CEO in the third quarter earnings press release.
JUST IN: ⚡️Michael Saylor says MicroStrategy’s endgame is to be the leading bitcoin bank and become a TRILLION-DOLLAR company. pic.twitter.com/gsfNPr76pI
— Bitcoin Archive (@BTC_Archive) October 11, 2024
Currently, MicroStrategy holds 252,220 Bitcoins, valued at approximately $18 billion. The company has revised its target BTC Yield to an estimated 6-10% annually, up from the previous 4-8%. This KPI is a primary metric reflecting MicroStrategy’s effectiveness in driving returns from its Bitcoin holdings. In Q3 2024, the company reported a BTC Yield of 17.8%, surpassing expectations.
Since 2020, MicroStrategy has pioneered a Bitcoin accumulation strategy, aiming to maximize shareholder value and protect assets from inflation. Through prior capital raises, the company has steadily acquired Bitcoin, and as of now, MicroStrategy’s MSTR shares have risen 250% year-to-date, reflecting investors’ confidence in this approach.
With plans to raise an additional $42 billion, MicroStrategy could acquire up to 578,586 BTC, which represents about 2.7% of the current Bitcoin supply. Experts view this strategy as a significant advantage for MicroStrategy, setting it apart from other public companies in the cryptocurrency sector.
Despite reporting third-quarter revenue of $116.1 million—below expectations—and a net loss of $340 million, the company remains committed to its Bitcoin strategy. Founder Michael Saylor has also suggested that Bitcoin’s price could reach as high as $13 million by 2045, lending substantial confidence to this ambitious plan.
Related news: MicroStrategy Sets Goal to Become the World’s First Bitcoin Bank
