Key Points
- MicroStrategy plans to raise $42 billion in the next three years to invest in Bitcoin.
- The firm’s Bitcoin reserves currently exceed 150,000.
MicroStrategy, an American software company, has gained a reputation as one of the world’s most bullish firms on Bitcoin (BTC).
The firm recently revealed plans to raise an impressive $42 billion within the next three years. This capital will be invested solely in Bitcoin, depending on whether the company can raise the required equity and fixed income securities.
MicroStrategy’s Bitcoin Investment Plan
This announcement was made during the company’s Q3 financial report release. The firm stated its strategic goal of raising $42 billion of capital over the next three years. This amount will be composed of $21 billion of equity and $21 billion of fixed income securities, referred to as the “21/21 Plan”.
As a Bitcoin Treasury Company, MicroStrategy plans to use this additional capital to purchase more Bitcoin as a treasury reserve asset. This strategy will enable the company to achieve a higher BTC Yield.
This announcement follows shortly after the company’s stock price reached a 25-year record high of $236, with a market cap of $47 billion. Several market speculators attribute this success to BTC’s recent surge.
MicroStrategy’s Current Bitcoin Holdings
MicroStrategy is already one of the largest institutional investors in Bitcoin. The firm’s Bitcoin reserves currently exceed 150,000.
Since mid-September, the company has not made any additional Bitcoin purchases. The last purchase consisted of an additional 7,420 BTCs for $458.2 million. Despite plans to add an additional $4 billion worth of Bitcoins to its profile, MicroStrategy’s current BTC holdings already exceed $18 billion.
This news is still developing…
