In a bold move reinforcing Michael Saylor’s unwavering commitment to cryptocurrency, MicroStrategy has announced a groundbreaking capital initiative aimed at acquiring more Bitcoin. The software technology firm disclosed its third-quarter earnings on Thursday, revealing plans to bolster its already substantial Bitcoin holdings, which currently stand at 252,220 BTC.
In a press release, MicroStrategy outlined its strategic objective to raise $42 billion over the next three years, split evenly between $21 billion in equity and $21 billion in fixed income securities. This initiative, dubbed the “21/21 Plan,” aims to enhance shareholder value by leveraging the ongoing digital transformation of capital. Phong Le, President and CEO of MicroStrategy, emphasized the company’s dedication to increasing its Bitcoin reserves as a treasury asset to optimize BTC yield.
The year 2024 has been transformative for Bitcoin, rebounding significantly from last year’s downturn. The cryptocurrency made headlines as the first crypto-based ETF launched in the U.S. back in January and surged to an impressive all-time high of $73,000 just three months later. With its recent performance, Bitcoin has set new records and shows potential for further growth in the coming month.
MicroStrategy’s stock (MSTR) has also mirrored this bullish trend, reaching a new peak as Bitcoin prices soared. On Tuesday, shares jumped nearly 9%, hitting $260—a remarkable achievement that reflects a staggering 470% increase throughout 2024, outpacing even Bitcoin’s own growth. This positions MicroStrategy as the largest corporate holder of Bitcoin and the world’s pioneering Bitcoin Treasury Company.
Andrew Kang, CFO of MicroStrategy, highlighted the company’s success in increasing its Bitcoin holdings by 11% during the last fiscal quarter. He noted that this treasury strategy has elevated their year-to-date BTC yield to an impressive 17.8% while simultaneously reducing total annualized interest expenses by $24 million.
