MicroStrategy Unveils $42 Billion Plan to Acquire More Bitcoin

MicroStrategy (MSTR) has revealed a bold plan to raise $42 billion over the next three years, aimed at purchasing additional Bitcoin for its balance sheet. The initiative is designed to enhance BTC yield for shareholders.

The "21/21 Plan"

In its recent Q3 earnings release, MicroStrategy outlined its "21/21 Plan," which involves raising $21 billion through at-the-market (ATM) equity offerings and an additional $21 billion via fixed-income securities. This dual approach is intended to fund the company's Bitcoin acquisitions.

Strategic Focus on BTC Yield

Phong Le, President and CEO of MicroStrategy, stated that the company intends to use the raised capital to buy Bitcoin as a treasury reserve asset, thereby increasing the BTC yield. The new annual BTC yield targets have been set between 6% and 10%, contingent on executing these financial strategies effectively.

Financial Performance and Impairment Loss

Despite its ambitious plans, MicroStrategy reported a $412 million impairment loss on its digital assets, highlighting that the company has not yet adopted fair value accounting for its holdings. This loss underscores the volatility associated with cryptocurrency investments.

Vision for the Future

MicroStrategy's executive chairman, Michael Saylor, has expressed his vision of transforming the company into a trillion-dollar Bitcoin bank. Following this announcement, MSTR stock surged to its highest levels in 20 years, reflecting investor optimism.