Key Takeaways
- MicroStrategy plans to raise $42 billion in three years.
- The company’s Bitcoin yields have improved, with a 5.1% yield in 2024 and a target of 10% for 2025-2027.
- The Fortune 500 company currently boasts an $18.2 billion BTC reserve.
MicroStrategy’s appetite for Bitcoin is showing no signs of cooling.
The Fortune 500 company, already the largest corporate holder of the cryptocurrency, has amassed a staggering $18.2 billion trove of 252,220 Bitcoin.
Yet, despite sitting on a tidy $8 billion profit, MicroStrategy is planning to raise billions to fuel even more Bitcoin purchases.
MicroStrategy’s 21/21 Plan
In its latest quarterly report, MicroStrategy revealed its ambitious 21/21 plan to raise a staggering $42 billion over the next three years, with the express aim of buying more Bitcoin.
The company’s strategy involves raising $21 billion in equity and $21 billion in fixed-income securities.
Phong Le, President and CEO of MicroStrategy, said:
“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,”
MicroStrategy’s Bitcoin obsession dates back to 2020 when it began accumulating the cryptocurrency in earnest.
Since then, the company has made a series of strategic purchases totaling $9.9 billion, steadily building its position.
A Strong Finish to Q3
The company’s earnings report revealed a strong finish to the third quarter, with notable improvements in Bitcoin yields: 5.1% in 2024 and 17.1% in 2027.
Building on this momentum, the firm has raised its BTC yield target to 10% for 2025-2027, up from its initial 6% goal.
In a significant capital raise, the company issued and sold 8,048,449 shares of its Class A common stock, generating approximately $1.1 billion in net proceeds.
Over the past year, the company has secured billions of dollars in funding by issuing convertible senior notes and shares, which its bankers can use to purchase additional Bitcoin and further drive growth.
A Bullish Turn
MicroStrategy’s fortunes reversed in 2024 after Bitcoin’s price touched new highs.
After struggling through the bear market of 2022-23, the company has seen its stock price rise about 300% this year, surpassing market favorites like Nvidia.
The company’s valuation has skyrocketed in the past four years, rising from just around $1 billion in 2020 to its current valuation of $50 billion.
Prashant Jha is a seasoned crypto journalist based in Delhi, India, with a Bachelor’s Degree in Computer Science Engineering. Passionate about the evolving world of blockchain and cryptocurrencies, he has been a dedicated voice in the industry since 2018. Prashant’s expertise lies in regulatory reporting, where he unravels complex legal and financial developments with clarity and precision. Before joining CCN in 2024, he honed his craft at Cointelegraph, establishing himself as a trusted name in crypto journalism.
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