Originally published on: October 31, 2024
MicroStrategy, led by Michael Saylor, is embarking on an ambitious venture to secure $42 billion within the next three years to bolster its Bitcoin holdings, the company announced. This strategic initiative, named the “21/21 plan,” will involve a $21 billion equity infusion and another $21 billion in fixed-income securities over the upcoming years.
Currently, $42 billion in Bitcoin translates to approximately 578,586 BTC, representing 2.7% of the total Bitcoin supply. MicroStrategy’s President and CEO, Phong Le, emphasized that this move is aimed at enhancing the firm’s returns from its Bitcoin investments.
Describing MicroStrategy as a “Bitcoin Treasury Company,” Phong highlighted the intention to utilize the additional capital to expand its Bitcoin reserves and achieve higher BTC Yield. The company’s reported BTC year-to-date yield stands at 17.8%, with a target of attaining an annual BTC yield ranging between 6% and 10% by 2025-2027.
Crypto analyst, BitcoinMiningStockGuy expressed bullish sentiments regarding the news, noting that the $21 billion budget surpasses the cumulative market capitalization of all public miners combined. Quant volatility researcher, Ryan McGinnis, lauded the plan as “escape velocity,” predicting a significant gap between MicroStrategy and its counterparts.
Earlier this year, McGinnis hailed MicroStrategy as a “Monopoly of Value.” Noteworthy is the completion of a $1.01 billion offering of convertible senior notes due in 2028 by MicroStrategy in September, with portions of the proceeds earmarked for Bitcoin procurement.
As of October 25, MicroStrategy has seen over a 1,500% surge since 1999, outperforming Microsoft’s 1,460% gains over the same 25-year span. This article does not provide investment advice, and readers are advised to conduct thorough research before making financial decisions. Subscribe to our newsletter for more insights and market updates.
