In an ambitious plan led by Michael Saylor, MicroStrategy will invest $42 billion in Bitcoin over the next three years, consolidating itself as the largest corporate holder of BTC globally. This massive capital injection reflects the company’s full confidence in the future of the leading Cryptocurrency.
MicroStrategy CEO Saylor sees Bitcoin as the key investment for the future of any company. For years, Saylor has tirelessly promoted the adoption of BTC, claiming that it is the only asset capable of preserving wealth in the long term.
The new initiative, which involves allocating $42 billion to BTC over a three-year period, was announced this Wednesday alongside the company’s quarterly earnings report. This ambitious plan, called “Plan 21/21”, is detailed in a statement published on October 30.
The 21/21 Plan contemplates raising $21 billion through the offering of shares and another $21 billion through the issuance of debt. This project will be developed in stages between 2025 and 2027.
MicroStrategy is the largest corporate holder of Bitcoin, with 252,220 coins. Source: Forbes
MicroStrategy Stock Reaction to New Bitcoin Purchase Plan
Following the announcement, MicroStrategy investors on the stock market are evaluating their position, generating some volatility in the company’s shares after several days of significant increases. According to data from Yahoo Finance, MicroStrategy shares have returned +37% in the last month.
From its recent peak of $267.89, shares have retreated to $247.38 as investors analyze the impact of the plan, which significantly emphasizes the acquisition of Bitcoin. Although many are sympathetic to MicroStrategy’s strategy, some express concern about the risk involved in such a substantial investment in a volatile asset like Bitcoin.
MSTR shares so far on Thursday (October 31). Source: Yahoo Finance
Additional Details of MicroStrategy’s Bitcoin Plan
MicroStrategy’s BTC acquisition plan will be executed in annual stages. In 2025, the company plans to raise $10 billion, split evenly between equity sales ($5 billion) and debt issuance ($5 billion).
By 2026, collection will increase to $14 billion in the same 50%-50% ratio, and in 2027 the plan will be completed with $18 billion, following the same financing structure.
MicroStrategy believes this fundraising plan is viable, based on recent achievements. In the third quarter of 2024, the company managed to raise $2.1 billion towards the purchase of Bitcoin, supporting its ability to execute the 21/21 Plan.
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