MicroStrategy has announced an ambitious “21/21 plan” to increase its Bitcoin holdings by raising $42 billion over the next three years. The company, led by CEO Phong Le, will seek $21 billion through equity and an additional $21 billion via fixed-income securities. If Bitcoin prices remain stable, the firm would acquire approximately 578,586 BTC, accounting for around 2.7% of Bitcoin’s total supply.
MicroStrategy announces $42 billion capital plan including $21 billion ATM equity offering and a target of raising $21 billion in fixed-income securities. Join us at 5pm ET as we discuss our quarterly results and #Bitcoin Treasury Company plans. $MSTR https://t.co/eXYELbN1Dm
— Michael Saylor⚡️ (@saylor) October 30, 2024
Boosting Returns on Bitcoin Holdings
The primary objective of this substantial investment is to enhance returns from the company’s Bitcoin holdings. MicroStrategy has consistently held Bitcoin as a treasury reserve asset, and Le emphasised the company’s commitment to raising yield. “As a Bitcoin Treasury Company, we aim to leverage additional capital to increase BTC yields while maintaining a robust reserve,” Le stated. MicroStrategy’s year-to-date Bitcoin yield currently stands at 17.8%, with a projected annual return of 6% to 10% between 2025 and 2027.
Recent Financial Moves Fuel the Plan
In September, MicroStrategy successfully completed a $1.01 billion private offering of 0.625% convertible senior notes due in 2028. This offering targeted institutional investors, with part of the proceeds allocated to Bitcoin purchases. The convertible notes enable investors to exchange for cash or MicroStrategy shares, adding a layer of flexibility to the firm’s capital-raising strategy.
Record Stock Performance Amid Aggressive Bitcoin Strategy
“But, what if, another operating company comes along and buys more bitcoin than MSTR?”
It’s over. This is escape velocity. The only question is how wide will the gap be between $MSTR, every other PubCo on Earth combined, and even countries. https://t.co/ltJdiIPdTr
— Ryan (@ryQuant) October 30, 2024
MicroStrategy’s stock has surged over 1,500% since 1999, outpacing major tech companies, including Microsoft, which posted a 1,460% gain during the same period. Quant researcher Ryan McGinnis described the 21/21 plan as reaching “escape velocity,” underscoring MicroStrategy’s unique position among publicly traded companies actively pursuing Bitcoin acquisition.
With its aggressive strategy, MicroStrategy continues to set itself apart, leading the charge in corporate Bitcoin investment while betting on substantial future gains.
