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MicroStrategy Announces $42 Billion Capital Plan To Buy More Bitcoin

Summary:
MicroStrategy (MSTR) announced on Wednesday that it plans to raise billion over the next 3 years to purchase more BTC for its balance sheet, and improve “BTC yield” for its shareholders.  In its Q3 earnings release, the company said that the “21/21 Plan” would involve raising billion through ATM equity offerings, and billion in fixed-income securities. 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,” said Phong Le, President and Chief Executive Officer of MicroStrategy. The company’s new targets for annual BTC yield have risen to between 6% and 10%, achieved by executing such raises and offerings at the right time. MicroStrategy also

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MicroStrategy (MSTR) announced on Wednesday that it plans to raise $42 billion over the next 3 years to purchase more BTC for its balance sheet, and improve “BTC yield” for its shareholders. 

  • In its Q3 earnings release, the company said that the “21/21 Plan” would involve raising $21 billion through ATM equity offerings, and $21 billion in fixed-income securities.
  • 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,” said Phong Le, President and Chief Executive Officer of MicroStrategy.
  • The company’s new targets for annual BTC yield have risen to between 6% and 10%, achieved by executing such raises and offerings at the right time.
  • MicroStrategy also reported a $412 million impairment loss on its digital assets, indicating that it is yet to adopt fair value accounting for its business.
  • MicroStrategy executive chairman Michael Saylor announced this month that he plans to evolve MicroStrategy into a trillion-dollar Bitcoin bank. MSTR stock soared to 20-year highs shortly after this promise.

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