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.
Microstrategy as it stands today is already the largest corporate holder of BTC with about 252,220 bitcoins worth $9.91 billion in its stash.
The recent development was announced by the firm’s president Phong Lee while announcing the 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 has not made any Bitcoin move since September. It announced in mid-September the acquisition of about 7,420 Bitcoins for $458.2 million. This latest acquisition brought its total holdings to 252,220 bitcoins for a total of $9.9 billion. Or an average price of $39.266 each.
Microstrategy’s current bitcoin stash is worth over $18 billion at the current market price of $72,000 for BTC.
The chief financial officer of Microstrategy Andrew Kang shed some light on how the firm has grown its BTC holding through the years while 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.
Activities of whales like Microstrategy can affect the price of Bitcoin and by extension other crypto assets.
What to Know
- Microstrategy was created as a business intelligence firm in 1989 by Michael Saylor but since then has pivoted into a lot of industries before rebranding as a Bitcoin Development company.
- Microstrategy is the world’s largest corporate holder of Bitcoin and is currently making additional plans to invest over $42 billion into buying more Bitcoin over the next three years.
- Microstrategy is a Bitcoin Super whale and its Onchain activities have the power to affect the price of Bitcoin immediately. Thus, announcements like this are viewed as bullish sentiments for the Flagship crypto asset.
