MicroStrategy, a leader in business intelligence, has once again taken the crypto world by storm with a groundbreaking initiative to quadruple its Bitcoin holdings. This bold move involves a staggering $42 billion investment strategy, making waves in the digital currency ecosystem. With its steadfast dedication to Bitcoin accumulation, MicroStrategy has solidified its position as the largest corporate holder of this cryptocurrency. If successful, this plan would see the company owning over 1 million BTC, approximately 4.76% of the total Bitcoin supply capped at 21 million BTC.
The 21/21 Plan: MicroStrategy’s $42 Billion Bitcoin Strategy
On October 30, Michael Saylor, the visionary founder and executive chairman of MicroStrategy, unveiled a transformative capital strategy set to redefine its role in the digital asset market. In a post shared on X (formerly Twitter), Saylor introduced the “21/21 plan,” a bold initiative targeting $42 billion in capital over the next three years to fuel MicroStrategy’s Bitcoin acquisition goals.
MicroStrategy disclosed in an official blog post that this substantial capital will be equally divided between At The Market (ATM) equity offerings and Fixed-Income securities. This strategic infusion of capital aims to support future Bitcoin purchases, with the company setting an ambitious target to boost its Bitcoin yield to between 6% and 10% annually from 2025 through 2027.
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The company has emphasized that Bitcoin yield is a critical metric for evaluating the success of its Bitcoin acquisition strategy, ensuring that it benefits shareholders. Phong Le, MicroStrategy’s President and CEO, highlighted that the primary focus is to enhance shareholder value by leveraging the digital transformation of capital. He affirmed that the 21/21 plan demonstrates MicroStrategy’s commitment to Bitcoin as a treasury reserve asset, underscoring the company’s mission to utilize capital intelligence for yield augmentation.
MicroStrategy Reports Bitcoin Yield For Q3 2024
As part of its strategic Bitcoin acquisition master plan, MicroStrategy disclosed remarkable accomplishments in Q3 2024 from its previous Bitcoin purchases. The company reported raising an impressive $2.1 billion through equity and debt, which contributed to an 11% expansion of its Bitcoin holdings, resulting in a Bitcoin yield of 5.1%.
Year-to-date (YTD), MicroStrategy’s Bitcoin yield has soared by an impressive 17.8%. Additionally, the company has significantly reduced its total annualized interest expense by $24 million, reflecting 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, valued at over $18.2 billion, with an average price of $39,292 per Bitcoin. Under Saylor’s directive, the company began its Bitcoin accumulation journey in August 2020, consistently making headlines with each substantial purchase that added to its already considerable holdings.
