MicroStrategy has shocked the crypto community with its latest plans to extend its Bitcoin stash by 4X with a powerful $42 billion capital plan. Known for its unwavering Bitcoin accumulation strategy, MicroStrategy has consistently purchased BTC, solidifying its position because the world’s largest corporate holder of the cryptocurrency. If the corporate can increase its BTC stash by 4X, MicroStrategy would own over 1 million BTC, representing roughly 4.76% of BTC’s total supply of 21 million BTC.
The 21/21 Plan: MicroStrategy’s $42 Billion Bitcoin Strategy
On October 30, Michael Saylor, the founder and executive chairman of MicroStrategy, the leading global business intelligence company, unveiled an astonishing recent capital strategy that would transform and elevate its role within the digital asset market. In an X (formerly Twitter) post, Saylor announced that the brand new capital strategy called the “21/21 plan” will goal $42 billion in capital over the following three years to fuel its BTC acquisition goals.
In an official blog post, MicroStrategy revealed that its $42 billion capital plan can be split evenly between At The Market (ATM) equity offerings and Fixed-Income securities. This significant capital fusion can be used to fund future BTC purchases, as the corporate goals to increase its Bitcoin stash and boost its BTC yield to a recent goal of 6-10% annually from 2025 through 2027.
In accordance with MicroStrategy, the BTC yield is a key metric that the corporate uses to guage the performance of its Bitcoin acquisition strategy in a fashion that may profit shareholders.
Speaking on the brand new BTC accumulation plan, MicroStrategy’s President and Chief Executive Officer (CEO), Phong Le, disclosed that the corporate’s primary focus is to extend the worth generated for shareholders by profiting from the digital transformation of capital. He disclosed that the 21/21 plan reflects MicroStrategy’s dedication to Bitcoin as a treasury reserve asset and underscores the corporate’s goal to make use of capital intelligence for yield argumentation.
MicroStrategy Reports Bitcoin Yield For Q3 2024
According to its strategic Bitcoin acquisition master plan, MicroStrategy disclosed significant achievements in Q3 2024 from its previous BTC purchases. The corporate reported raising a powerful $2.1 billion in equity and debt, which expanded its Bitcoin holdings by 11% and led to a BTC yield of 5.1%.
Yr-to-date (YTD), MicroStrategy’s BTC yield has increased by a powerful 17.8%. Furthermore, the business intelligence company has significantly decreased its total annualized interest expense by $24 million, highlighting its commitment to sustainable growth while maintaining financial efficiency.
As of September 20, 2024, MicroStrategy’s total Bitcoin holdings are estimated at 252,220 BTC. This massive BTC stash is price over $18.2 billion, with a median price of $39,292. On the directive of Saylor, the business intelligence company began accumulating Bitcoin in August 2020, making headlines with each massive BTC purchase that increased its already considerable holdings.
Featured image created with Dall.E, chart from Tradingview.com