Microstrategy Announces Plans to Raise $42B to Buy More Bitcoin

Microstrategy, A Bitcoin Development company has announced its plans to raise a staggering $42 billion to buy more Bitcoin in the space of Three years.

Bitcoin development company MicroStrategy has announced plans to raise a total of $42 billion over the next three years to buy more bitcoin.

The company, which is already the largest corporate holder of BTC with around 252,220 bitcoins, announced the move as part of its financial results for the third quarter of the year.

“Our focus remains to increase the value generated to our shareholders by leveraging the digital transformation of capital. Today, we are announcing a strategic goal of raising $42 billion of capital over the next 3 years, comprised of $21 billion of equity and $21 billion of fixed-income securities, which we refer to as our “21/21 Plan.”

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,” said Phong Le, President and Chief Executive Officer, of MicroStrategy.

MicroStrategy last made a bitcoin purchase in September, when it announced the acquisition of around 7,420 bitcoins for $458.2 million. The purchase brought its total bitcoin holdings to 252,220 bitcoins, at an average price of $39,266 each.

At current market prices, MicroStrategy's bitcoin stash is now worth over $18 billion, based on a price of $72,000 for BTC.

MicroStrategy CFO Andrew Kang also highlighted how the company has grown its BTC stash over the years, while also touching on the year-to-date BTC yield.

“Q3 2024 was another transformational quarter for MicroStrategy, as we raised $2.1 billion in equity and debt. Our proven track record of using intelligent leverage serves as the foundation to execute our strategic three-year 21/21 Plan.

Through our treasury strategy, we increased our bitcoin holdings by 11% in the quarter, increased our year-to-date BTC Yield to 17.8%, and reduced our total annualized interest expense by $24 million,” said Andrew Kang, Chief Financial Officer, MicroStrategy.

The moves by whales like MicroStrategy can have a significant impact on the price of bitcoin and other crypto assets.

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