MicroStrategy has shocked the crypto community with its latest plans to quadruple its Bitcoin supply with an impressive $42 billion capital plan. MicroStrategy is known for its steadfast Bitcoin accumulation strategy consistently bought BTCsolidifying its position as the world’s largest corporate holder of the cryptocurrency. If the company can increase its BTC stock at 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 Saylorthe founder and executive chairman of MicroStrategy, the leading global business intelligence company, unveiled an astonishing new capital strategy that could transform and expand its role in the digital assets market. In an X (formerly Twitter) afterSaylor announced that its new capital strategy, called the ’21/21 plan’, will target $42 billion in capital over the next three years to fuel its BTC acquisition objectives.
With an official blog postMicroStrategy revealed that its $42 billion capital plan will be divided equally between At The Market (ATM) equity issues and fixed income securities. This significant capital merger will be used to fund future BTC purchases, as the company aims to do increasing his Bitcoin supply and increase BTC returns to a new target of 6-10% per year between 2025 and 2027.
According to MicroStrategy, BTC return is a key metric that the company uses to evaluate the performance of its Bitcoin acquisition strategy in a way that will benefit shareholders.
Talking about the new BTC accumulation planMicroStrategy President and Chief Executive Officer (CEO) Phong Le announced that the company’s primary focus is on increasing the value generated for shareholders by capitalizing on the digital transformation of capital. He revealed that the 21/21 plan reflects MicroStrategy’s commitment Bitcoin as a treasury reserve and underlines the company’s goal to use capital intelligence for return arguments.
MicroStrategy reports Bitcoin revenue for Q3 2024
In line with its strategy Bitcoin Takeover Master PlanMicroStrategy announced significant performance from its previous BTC purchases in Q3 2024. The company reported raising an impressive $2.1 billion in equity and debt, expanding its Bitcoin holdings by 11% and leading to a BTC return of 5.1%.
So far (YTD), MicroStrategy’s BTC return is up an impressive 17.8%. Additionally, the business intelligence company significantly reduced its total annualized interest expense by $24 million, underscoring 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 supply is worth over $18.2 billion, with an average price of $39,292. On Saylor’s orders, the business intelligence firm began accumulating Bitcoin in August 2020, making headlines in the process. massive purchase of BTC thus increasing his already considerable holdings.
Featured image created with Dall.E, chart from Tradingview.com