MicroStrategy Announces $42 Billion Capital Plan To Buy More Bitcoin

MicroStrategy (MSTR) announced on Wednesday that it plans to raise $42 billion over the next 3 years to purchase more BTC for its balance sheet, and improve “BTC yield” for its shareholders. 

• In its Q3 earnings release, the company said that the “21/21 Plan” would involve raising $21 billion through ATM equity offerings, and $21 billion in fixed-income securities.
  
• As a Bitcoin Treasury Company, we plan to use the additional capital to buy more bitcoin as a treasury reserve asset in a manner that will allow us to achieve higher BTC Yield,” said Phong Le, President and Chief Executive Officer of MicroStrategy.
• The company’s new targets for annual BTC yield have risen to between 6% and 10%, achieved by executing such raises and offerings at the right time.
• MicroStrategy also reported a $412 million impairment loss on its digital assets, indicating that it is yet to adopt fair value accounting for its business.
• MicroStrategy executive chairman Michael Saylor announced this month that he plans to evolve MicroStrategy into a trillion-dollar Bitcoin bank. MSTR stock soared to 20-year highs shortly after this promise.