MicroStrategy's Bitcoin Moves: $42 Billion Plan.
MicroStrategy has announced that it aims to raise $42 billion in funds to increase the number of bitcoins ($BTC ) it holds.
MicroStrategy has announced a new $42 billion capital plan to expand its Bitcoin investment strategies. Under the plan, the company aims to increase its Bitcoin holdings by providing half of its capital in equities and the other half in fixed-income securities.
MicroStrategy has announced its third-quarter financial results and reported that Bitcoin revenues increased by 5.1 percent during the period. The company’s reported year-to-date Bitcoin return rate is 17.8 percent. This rate is used as a benchmark in evaluating the performance of Bitcoin investment strategies. On the other hand, MicroStrategy reportedly holds approximately 252,220 Bitcoin as of September 30.
As part of MicroStrategy’s recently announced “21/21 Plan,” it aims to raise $42 billion in capital over the next three years. This capital will consist of $21 billion in equities and $21 billion in fixed-income securities. The company aims to support its asset management strategy by increasing its Bitcoin reserves with this capital raising.
In the third quarter, MicroStrategy raised $2.1 billion in equity and debt, increased its holdings of $BTC by 11 percent, and cut annual interest expense by $24 million. Still, the company’s total revenue was $116.1 million, about $8 million short of expectations.
Total operating expenses for the quarter were $514.3 million. $412.1 million of that expense was due to losses on digital assets, and a loss of $432.6 million was incurred from operations. Net loss for the quarter was $340.2 million, or $1.72 per share.