MicroStrategy has unveiled a daring three-year plan to lift $42 billion in capital aimed toward increasing its Bitcoin holdings considerably, in line with an Oct. 30 assertion.
Dubbed the “21/21 Plan,” this technique intends to collect $21 billion from fairness and a further $21 billion by way of debt, with the funds directed towards rising the corporate’s Bitcoin treasury.
MicroStrategy’s President and CEO Phong Le shared insights into the corporate’s intentions, stating that the agency is concentrated on rising shareholders’ worth by leveraging the digital transformation of capital. He added:
“As a Bitcoin Treasury Firm, we plan to make use of the extra capital to purchase extra bitcoin as a treasury reserve asset in a way that may permit us to attain greater BTC Yield.”
This technique marks a big escalation within the firm’s ambitions for Bitcoin. At present costs, MicroStrategy’s $42 billion plan might end result within the acquisition of round 580,000 BTC, accounting for two.7% of the entire provide.
With 450 new Bitcoin mined day by day and the subsequent halving scheduled for March 2028—roughly 1,243 days away—MicroStrategy’s deliberate purchases might doubtlessly purchase practically all new Bitcoin mined throughout this era.
Furthermore, this is able to translate to a steady day by day purchase strain of $40 million for 3 years, an element that might reshape Bitcoin’s supply-demand situations.
At the moment, MicroStrategy owns roughly 1.2% of Bitcoin’s whole provide, or 252,220 BTC, with an estimated worth of $16 billion. The corporate’s authentic funding in Bitcoin totaled $9.9 billion, with a median buy worth of $39,266 per BTC.
So, with its deliberate $42 billion buy, the agency wouldn’t solely quadruple its funding within the high asset but in addition additional solidify its main place as a Bitcoin-first firm.
Bitcoin yield
Whereas MicroStrategy has enormous Bitcoin acquisition ambitions, it said that it was adjusting its BTC yield projection to a variety of 6% to 10% for 2025-2027, reflecting a extra cautious outlook.
The BTC yield is a important measure of the corporate’s success in delivering shareholder worth by way of Bitcoin acquisitions. The Michael Saylor-led agency reported a year-to-date BTC yield of 17.8%.
