MicroStrategy plans to raise an additional $42 billion over the next 3 years to buy more Bitcoin!
Today (October 31), Michael Saylor's MicroStrategy announced a remarkable plan called the '21/21 Plan'.
Specifically, Michael Saylor (CEO of MicroStrategy) revealed that the company plans to raise an additional $42 billion over the next 3 years to accumulate more BTC (Bitcoin). Of this, MicroStrategy intends to raise $21 billion through equity and the remaining $21 billion through bonds.
At the time of writing, $42 billion would equate to approximately 578,500 BTC - accounting for 2.7% of the total supply of Bitcoin. This is a colossal number, and if MicroStrategy's plan is realized, they will become the organization holding the most BTC in the world.
In addition to announcing a new development roadmap, MicroStrategy also reported Q3 2024 earnings with revenue of $116.1 million - about $8 million lower than expected. Operating expenses reached over $514 million, meaning the company recorded a net loss of $340 million in Q3 2024.
Explaining the loss, MicroStrategy stated that sales and other cash flows had significantly declined in Q3. Following this news, MSTR's stock price dropped by up to 10% in after-hours trading, although it has still increased by about 250% over the past year.
MicroStrategy reports that their BTC investment has achieved a profit of 17.8% since the beginning of 2024 amid BTC approaching its ATH in recent days - an increase of 5.1% compared to the Q2 report.
The company aims to achieve an annual BTC investment yield of 6% - 10% during the period of 2025 - 2027, higher than the previous quarter's range of 4% - 8% / year.
As of the time of writing, MicroStrategy currently holds 252,220 BTC - worth $18.2 billion. With an average purchase price of $39,266 / BTC, the company's BTC investment is currently yielding nearly $8.3 billion (+83.23%). This shows MicroStrategy's immense belief in BTC has been rewarded handsomely.
Recently, MicroStrategy founder Michael Saylor has consistently expressed the view that BTC could reach $13 million by 2045. If this becomes true, their BTC investment would be worth over $3.2 trillion by 2045 - surpassing even Microsoft's market capitalization.
