MicroStrategy Unveils Its $42 Billion Bitcoin Strategy, Plans to Increase Its BTC Stash by 4X

MicroStrategy has shocked the crypto community with its latest plans to increase its Bitcoin stash by 4X with an impressive $42 billion capital plan.

MicroStrategy, renowned for its bold Bitcoin accumulation strategy, has unveiled a grand capital plan that aims to increase its BTC stash by 4X, potentially making the company the world’s largest corporate holder of the cryptocurrency.

If MicroStrategy can execute its plan successfully, it would own over 1 million BTC, representing approximately 4.76% of BTC’s total supply of 21 million BTC. This massive BTC stash would be valued at over $70 billion at current prices.

To achieve this goal, MicroStrategy plans to raise $42 billion in capital over the next three years, which will be used to fund future BTC purchases. The company will also aim to increase its BTC yield to a new target of 6-10% annually from 2025 through 2027.

In an official blog post, MicroStrategy explained that its capital plan is designed to "transform MicroStrategy into the world’s leading capital allocator and digital asset acquisition company."

The company's president and CEO, Phong Le, stated that MicroStrategy's primary focus is to increase the value generated for shareholders by taking advantage of the digital transformation of capital.

"Our 21/21 capital plan reflects our dedication to BTC as a treasury reserve asset and underscores our goal to use capital intelligence for yield argumentation," said Le.

MicroStrategy also reported its Bitcoin yield for Q3 2024, revealing significant achievements from its previous BTC purchases. The company disclosed that it raised an impressive $2.1 billion in equity and debt during the quarter, which expanded its Bitcoin holdings by 11% and led to a BTC yield of 5.1%.

Year-to-date (YTD), MicroStrategy's BTC yield has increased by an impressive 17.8%. Moreover, the business intelligence company has significantly decreased its total annualized interest expense by $24 million, highlighting its commitment to sustainable growth while maintaining financial efficiency.

As of September 20, 2024, MicroStrategy's total Bitcoin holdings are estimated at 252,220 BTC. This massive BTC stash is worth over $18.2 billion, with an average price of $39,292. At the directive of Saylor, the business intelligence company began accumulating Bitcoin in August 2020, making headlines with each massive BTC purchase that increased its already considerable holdings.

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