Important points:
- MicroStrategy is looking to raise $42 billion to invest in Bitcoin.
- As of Q3 2024, 252,220 BTC are held in the Treasury, amounting to $6.851 billion.
- A new $21 billion offer is set to expand MicroStrategy’s BTC reserves.
MicroStrategy has set an audacious goal of raising $42 billion over the next three years as part of its 21/21 Plan to expand its Bitcoin holdings. As disclosed in recent press releasesThe company is known to be a significant holder of Bitcoin and intends to generate $21 billion in equity and another $21 billion through bonds.
However, these funds were primarily intended to be used to purchase additional BTC, in line with MicroStrategy’s strategy to make Bitcoin the primary treasury asset. As such, our President and CEO Mr. Von Leh focused on how this approach can increase shareholder value through capital transformation and at the same time improve MicroStrategy’s BTC yield. I did.
In Q3 2024, the company raised $2.1 billion and increased its BTC holdings by 11%, achieving a year-to-date BTC yield of 17.8%, according to the company’s Chief Financial Officer Andrew Kang. .
Cryptocurrency government bonds continue to soar due to new stock issuance
Beyond the funding, MicroStrategy has taken additional steps to strengthen its BTC-focused strategy. On October 30, the company announced a new “at the market” equity program that aims to raise an additional $21 billion through the issuance of Class A common stock.
This follows a $1.1 billion increase in the third quarter through similar means. After a 10:1 stock split in August, MicroStrategy continued to strengthen its crypto-centric agenda, leaving it with an impressive BTC reserve of around 252,220 coins at the end of September.
The enormous treasure that is BTC, valued at nearly $16 billion, confirms confidence in Bitcoin’s future potential. MicroStrategy then secured $1.01 billion in convertible notes due 2028 to further expand its Bitcoin assets. Together, these moves strengthen the company’s position as a pioneering corporate investor in Bitcoin.
Third quarter financial results and Bitcoin yield target
MicroStrategy reported third quarter 2024 gross profit of $116.1 million and gross profit of $81.7 million, a decrease of 10.3% year-over-year.
Operating expenses increased by more than 300% due to the impairment of the company’s digital assets. Despite all these losses, MicroStrategy has not given up on its plans to increase BTC yield and is targeting an annual yield of 6-10% from 2025 to 2027.
MicroStrategy’s “21/21 Plan” further strengthens its finances and sets such a precedent for enterprise-level Bitcoin investing, moving traditional financial strategies to better align with the growth potential of digital assets. did.
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