MicroStrategy, the American tech company, has announced plans to raise USD 42 billion, or roughly IDR 660 trillion, to expand its Bitcoin (BTC) portfolio.
In an official statement on Wednesday (10/30/2024), MicroStrategy detailed that this funding will be secured over the next three years, split evenly between USD 21 billion in equity and USD 21 billion in bonds. This financing approach is termed the “21/21 Plan.”
“As a company that holds Bitcoin as a treasury asset, we plan to leverage this additional capital to purchase more Bitcoin as part of our asset reserves, with a goal to increase BTC Yield,” explained Phong Le, MicroStrategy’s President and CEO.
BTC Yield is a key performance indicator (KPI) created by Chairman Michael Saylor and the team to assess the company’s effectiveness in acquiring BTC at added value. With Bitcoin’s current price at approximately USD 72,300, MicroStrategy’s acquisition goal amounts to around 580,913 BTC, or approximately 2.94% of the circulating Bitcoin supply of 19.78 million BTC.
Leading Bitcoin-Holding Company
In its third-quarter earnings report, MicroStrategy revealed that its BTC Yield, or Bitcoin return, reached 17.8% in 2024. The company aims to further boost its annual BTC Yield by 6% to 10% for the 2025-2027 period.
In September, the company completed a USD 1.01 billion convertible bond offering with a 0.625% interest rate due in 2024, with a large portion of these funds allocated toward purchasing 7,420 BTC valued at USD 458.2 million.
Currently, data from BitcoinTreasuries shows that MicroStrategy remains the world’s largest public company holding Bitcoin, owning 252,220 BTC, currently valued at USD 18.2 billion.
At the end of the quarter, MicroStrategy retained approximately USD 891.3 million in funds from previous capital raises as part of its long-term acquisition strategy.
At the time of writing, MicroStrategy’s stock saw a dip of around 4% on Wednesday but maintains a year-to-date (YTD) increase of 261%, according to Google Finance.
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