MicroStrategy is about to get more aggressive with its Bitcoin strategy as it plans to raise $42 billion in the coming year for more buyups
MicroStrategy has announced plans to raise $42 billion to pursue a more robust Bitcoin accumulation spree. According to the plan, this capital will be generated within three years. Noteworthy, this is a means for the firm to bolster its Bitcoin strategy, which it has held dearly for four years.
MicroStrategy announces $42 billion capital plan including $21 billion ATM equity offering and a target of raising $21 billion in fixed-income securities. Join us at 5pm ET as we discuss our quarterly results and #Bitcoin Treasury Company plans. $MSTR https://t.co/eXYELbN1Dm
— Michael Saylor⚡️ (@saylor) October 30, 2024
MicroStrategy to Top its 252,220 Bitcoin Holding
It is worth noting that the Michael Saylor-led firm has not made another Bitcoin purchase since September. MicroStrategy’s last Bitcoin acquisition was on September 20, when it purchased 7,420 units of the coin.
The acquisition had a valuation of $458.2 million at the time. This acquisition moved the firm’s BTC holding from 244,800 to 252,220 BTC.
The total Bitcoin holdings amounted to $9.9 billion, at an average price of $39,266 each. At this time, Bitcoin’s current price is $72,360.72. This makes the company’s Bitcoin worth more than $18 billion. Bitcoin price will likely experience a boost due to the buying pressure that MicroStrategy’s move will trigger.
The newly planned fund will comprise $21 billion of equity and $21 billion of fixed-income securities. In addition to the $42 billion capital, MicroStrategy also revealed its new status as a Bitcoin Treasury Company. Hence, it announced that some of this capital would be used to buy more BTC as a treasury reserve asset.
This will allow MicroStrategy to achieve a higher Bitcoin yield in the long run.
MicroStrategy Targets High Yield With BTC Strategy
Phong Le, President and CEO of MicroStrategy, noted in the third quarter press release that “as a Bitcoin Treasury Company, we plan to use the additional capital to buy more bitcoin as a treasury reserve asset in a manner that will allow us to achieve higher BTC Yield.”
With 1.2% of Bitcoin’s total supply in its holding, MicroStrategy is currently ranked as the fifth-largest holder after Satoshi Nakamoto, Binance, Blackrock, and Grayscale. So far, the firm has benefitted strongly from its Bitcoin strategy.
Precisely, its stock MSTR is one of the best-performing shares in the market, outpacing many others, including those in the S&P 500 Index.
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