MicroStrategy Plans To Raise $42B For More Bitcoin Acquisition

MicroStrategy has disclosed its plan to raise $42 billion over the next three years for additional Bitcoin acquisition.This move will boost its Bitcoin Treasury reserve strategy and also enhance BTC yield for its shareholders.

The firm also disclosed its new 21/21 Plan," a move aimed at generating $42 billion in capital, $21 billion in equity, and $21 billion in fixed-income securities in the next three years.

MicroStrategy Lays A Plan For Accumulating $42 Billion In Bitcoin

Michael Saylor's MicroStrategy has revealed its plans to remain bullish on Bitcoin. The firm aims to raise $42 billion over the next three years to acquire more BTC tokens.

This information came on Wednesday, October 30, as MicroStrategy released its Q3 financial report for 2024.

According to the report, the firm aims to generate $42 billion in three years, which aligns with its 21/21 Plan." This plan will see the company having $21 billion in equity and $21 billion in fixed-income securities.

Meanwhile, the firm reported a 5.1% surge in its BTC yield" for the quarter. It plans to boost its balance sheet and BTC yield for its shareholders in the long run.

MicroStrategy, which claims to be a Bitcoin Treasury Company," noted that the plan to accumulate additional Bitcoin satisfies its treasury reserve strategy.

MicroStrategy Records 11% Increase In Bitcoin Holding In Third Quarter.

According to MicroStategy's Q3 report, the firm recorded an 11% increase in the third quarter.

The report indicated that MicroStrategy holds a total of 252,220 BTC tokens as of September 30, worth over $16 billion. The firm purchased the coins at an average cost of $39,266 per token.

Following its report, MicroStrategy now holds over 1.2% of BTC's circulating supply. Moreover, it stands as the fifth largest Bitcoin holder after Nakamoto, Binance, BlackRock, and Grayscale.

The firm's 21/21 Plan" could also trigger significant buying pressure for Bitcoin, with potential explosive rallies.

MicroStrategy's report indicated that it generated about $2.1 billion via equity and debt in the third quarter. Also, the firm cut down its annual interest expenses by $24 million in Q3. Its total revenue amounted to $116.1 million, about $8 million below consensus estimates for the quarter.

Meanwhile, MicroStrategy's Q3 revenue earnings plummeted to 10.3% compared to the figure for the same quarter last year. The difference is due to the drastic drops in the company's product licenses and support revenues. MicroStrategy's net loss for Q3 amounted to $340.2 million, translating to $1.72 per diluted share.

Despite the loss, MicroStrategy remains optimistic about the future and is focused on boosting its presence with Bitcoin.It increased its BTC Yield target for its shareholders, projecting between 6% and 10% for 2025 to 2027.

Also, the firm disclosed its new equity that offers up to $21 billion. This move forms part of its strategy to accumulate more BTC tokens and boost shareholders' value.

According to data from Google Finance, MicroStrategy's stock, MSTR, has recorded over a 260% increase YTD. The share trades at $247.31, indicating a 4.23% decline over the past day.

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