MicroStrategy has shocked the crypto community with its latest plans to increase its Bitcoin stash by 4X with an impressive $42 billion capital plan. Known for its unwavering Bitcoin accumulation strategy, MicroStrategy has consistently purchased BTC, solidifying its position as the world’s largest corporate holder of the cryptocurrency. If the company can increase its BTC stash by 4X, MicroStrategy would own over 1 million BTC, representing approximately 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 new capital strategy that could transform and elevate its role in the digital asset market. In an X (formerly Twitter) post, Saylor announced that the new capital strategy called the “21/21 plan” will target $42 billion in capital over the next three years to fuel its BTC acquisition goals.
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In an official blog post, MicroStrategy revealed that its $42 billion capital plan will be split evenly between At The Market (ATM) equity offerings and Fixed-Income securities. This significant capital fusion will be used to fund future BTC purchases, as the company aims to increase its Bitcoin stash and boost its BTC yield to a new target of 6-10% annually from 2025 through 2027.
According to MicroStrategy, the BTC yield is a key metric that the company uses to evaluate the performance of its Bitcoin acquisition strategy in a manner that will benefit shareholders.
Speaking on the new BTC accumulation plan, MicroStrategy’s President and Chief Executive Officer (CEO), Phong Le, disclosed that the company’s primary focus is to increase the value generated for shareholders by taking advantage of 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 company’s goal to use capital intelligence for yield argumentation.
MicroStrategy Reports Bitcoin Yield For Q3 2024
In line with its strategic Bitcoin acquisition master plan, MicroStrategy disclosed significant achievements in Q3 2024 from its previous BTC purchases. The company reported raising an impressive $2.1 billion in equity and debt, which expanded its Bitcoin holdings by 11% and led to a BTC yield of 5.1%.
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Year-to-date (YTD), MicroStrategy’s BTC yield has increased by an impressive 17.8%. Moreover, 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 worth over $18.2 billion, with an average price of $39,292. At 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