MicroStrategy To Raise $42 Billion And Buy More Bitcoin

Published 2024-10-31, 07:06 a/m
© Reuters.  MicroStrategy To Raise $42 Billion And Buy More Bitcoin
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yolowire.com - MicroStrategy’s (NASDAQ: MSTR) appetite for Bitcoin (CRYPTO: BTC) shows now signs of being satiated anytime soon.

The software firm turned self-described “Bitcoin development company” has announced plans to raise $42 billion U.S. of capital so that it can purchase more BTC over the next three years.

MicroStrategy Executive Chairman Michael Saylor remains fully committed to accumulating as much of the world’s largest cryptocurrency as possible.

Saylor has unveiled what he calls MicroStrategy’s "21/21 Plan," which calls for $21 billion U.S. of equity raises and $21 billion U.S. of debt offerings over the next three years so that the company can accumulate more Bitcoin.

“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 the company when releasing its third-quarter financial results.

MicroStrategy is already the world’s biggest corporate holder of Bitcoin.

The company currently owns 252,220 Bitcoins that it acquired at a total cost of $9.9 billion U.S, or an average price of $39,266 U.S. per digital token.

At the current price of $72,000 U.S., MicroStrategy’s Bitcoin holdings are worth around $18 billion U.S. The company most recently purchased 7,420 Bitcoins for $458.2 million U.S. in September of this year.

MicroStrategy’s stock is trading lower today (Oct. 31) after the company reported a third-quarter loss of $1.56 U.S. a share, which was much worse than a $0.02 U.S. per share loss expected on Wall Street.

However, MicroStrategy’s stock is up 260% year-to-date and had most recently been trading at $247.31 U.S. per share.

This content was originally published on yolowire.com

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