MicroStrategy Unveils $42 Billion Plan to Expand Bitcoin Holdings
MicroStrategy, renowned as the largest corporate holder of Bitcoin, has unveiled an ambitious initiative aimed at amassing $42 billion over the next three years to bolster its Bitcoin reserves.
Dubbed the “21/21 Plan,” this strategy was revealed during the company’s Q3 2024 earnings call and entails generating $21 billion through equity offerings and another $21 billion through fixed-income securities.
This significant fundraising endeavor is part of MicroStrategy’s objective to position Bitcoin as a central Treasury reserve asset. CEO Phong Le highlighted that this initiative is integral to enhancing shareholder value by reinforcing the company’s commitment to Bitcoin.
READ MORE: Defiance ETFs Boosts MicroStrategy Fund Leverage for Greater Bitcoin Exposure
In its latest quarterly results, MicroStrategy reported a strong performance, raising $2.1 billion in the third quarter and increasing its Bitcoin holdings by 11%, yielding a year-to-date return of 17.8% on BTC. However, the software division’s results were mixed, with subscription revenue rising by 32.5%, but total revenue falling by 10.3% year-over-year to $116.1 million.
Despite facing challenges in its core software business, MicroStrategy’s aggressive Bitcoin investment strategy has proven fruitful. Currently, its 252,220 BTC holdings are valued at approximately $18.27 billion, indicating an unrealized profit of $8.3 billion, or a remarkable 83.5%.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
