Key Takeaways
- MicroStrategy plans to raise $42B to buy more Bitcoin over the next three years.
- The company's Bitcoin holdings are worth over $18B at current prices.
- MicroStrategy increased its BTC Yield target range to 6%-10%.
MicroStrategy, led by Executive Chairman Michael Saylor, has announced plans to raise $42 billion to buy more Bitcoin over the next three years.
Known for its Bitcoin-focused strategy, the company’s “21/21 Plan” includes raising $21 billion through equity offerings and another $21 billion via debt.
No purchases since September
Although MicroStrategy hasn’t added to its Bitcoin holdings since mid-September, the company remains committed to its role as a “Bitcoin Treasury Company.”
As President and CEO Phong Le stated:
We plan to use the additional capital to buy more bitcoin as a treasury reserve asset.
## Current holdings
As of mid-September, the firm held 252,220 bitcoins, worth over ~$18 billion at the current price of ~$72,000.
This marks a significant gain from its total acquisition cost of $9.9 billion.
MicroStrategy also raised its projected “BTC Yield” range from 6%-10%, up from 4%-8%. For Q3, the company achieved a BTC Yield of 17.8%.
MicroStrategy’s shares have risen 250% year-to-date, though they were down 10% in after-hours trading after this announcement.
