Billionaire Saylor’s MicroStrategy Unveils $42B Plan to Buy More Bitcoin Over Next Three Years

Bitcoin Michael Saylor MicroStrategy

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Ruholamin Haqshanas

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Ruholamin Haqshanas

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Ruholamin Haqshanas is a contributing crypto writer for CryptoNews. He is a crypto and finance journalist with over four years of experience. Ruholamin has been featured in several high-profile crypto...

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October 30, 2024

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MicroStrategy, the enterprise software firm led by founder and executive chairman Michael Saylor, has announced plans to secure an additional $42 billion in funding over the next three years, with the sole purpose of buying more Bitcoin.

Dubbed the “21/21 plan,” the strategy involves raising $21 billion in equity and $21 billion in fixed-income securities to continue its aggressive Bitcoin acquisition.

In an official statement on October 30, MicroStrategy outlined its intent to strengthen its position as a Bitcoin Treasury Company.

MicroStrategy to Allocate New Capital to Enhance Bitcoin Returns

The firm’s president and CEO, Phong Le, emphasized that this capital would be strategically allocated to enhance Bitcoin returns.

“Our aim is to use this new funding to purchase Bitcoin as a treasury reserve asset in a manner that can generate a higher BTC yield,” he stated.

MicroStrategy’s current annual yield on its Bitcoin holdings stands at 17.8%, with expectations to achieve between 6% and 10% annually from 2025 to 2027.

At Bitcoin’s current price of around $70,714, this planned investment could translate to approximately 578,586 BTC, representing about 2.7% of the total Bitcoin supply.

The strategy has generated significant interest across the crypto community.

One crypto commentator, known as BitcoinMiningStockGuy, expressed optimism, comparing MicroStrategy’s planned $21 billion infusion to the entire market cap of public Bitcoin miners.

Ryan McGinnis, a quant volatility researcher, called the plan “escape velocity,” predicting a widening gap between MicroStrategy and other companies—even nation-states—in Bitcoin holdings.

MicroStrategy’s latest move follows its recent $1.01 billion private offering, which closed on Sept. 19, raising capital earmarked for Bitcoin acquisitions.

This adds to the firm’s evolving legacy as one of Bitcoin’s most dedicated institutional supporters.

More Firms Adopt Bitcoin as Reserve Asset

The ongoing macroeconomic uncertainties, characterized by increasing inflationary pressures and geopolitical tensions, have prompted corporate treasurers to explore the inclusion of Bitcoin as a reserve asset.

Just recently, digital asset prime services platform Abra launched a service designed for corporates seeking to hold cryptocurrencies as reserve assets on their balance sheets.

Likewise, Japanese investment firm Metaplanet has been actively increasing its bitcoin holdings since May, when it announced plans to use Bitcoin as a strategic treasury reserve.

The move was driven by Japan’s economic challenges, including high government debt, negative interest rates, and a weakening yen.

In addition to its Bitcoin purchase, Metaplanet revealed it will exercise stock acquisition rights, generating 299.7 million yen to fund further bitcoin acquisitions.

The firm also announced a partnership with SBI VC Trade, the crypto subsidiary of SBI Group, to access corporate custody services that optimize tax efficiency and provide potential financing options using bitcoin as collateral.

Earlier this month, the firm raised approximately 10 billion yen ($66 million) through a stock acquisition rights offering, attracting 13,774 individual shareholders.