MicroStrategy Aims to Raise $42 Billion to Expand Bitcoin Holdings

MicroStrategy, led by Michael Saylor, has unveiled a large-scale strategy to expand its Bitcoin holdings over the next three years. The company, which positions itself as a “Bitcoin development company,” released its third-quarter earnings recently, revealing no new Bitcoin purchases since mid-September. However, this pause in buying doesn’t signal a shift away from Bitcoin. Instead, MicroStrategy has outlined an ambitious new strategy, aiming to raise $42 billion over the next three years specifically to buy more Bitcoin.

This plan, labeled the “21/21 Plan,” splits the funding goal between $21 billion in equity raises and another $21 billion in debt offerings. MicroStrategy aims to use these funds to buy Bitcoin and reinforce its position as a Bitcoin-focused treasury company. According to Phong Le, MicroStrategy’s president and CEO, the approach will allow the company to “achieve higher BTC Yield,” indicating a strategic focus on both accumulation and maximizing Bitcoin-based returns.

Back in September, the firm purchased 7,420 BTC for $458.2 million, bringing its total holdings to 252,220 BTC, acquired for an overall investment of $9.9 billion. At an average price of $39,266 per Bitcoin, this investment has significantly appreciated, with the current Bitcoin price hovering around $72,000, nearly doubling the value of its holdings to over $18 billion.

While this aggressive three-year plan stands out, MicroStrategy’s focus on Bitcoin aligns with Saylor’s broader vision of Bitcoin as a prime long-term asset. For years, Saylor has been vocal about the potential of Bitcoin to outpace traditional investments and hedge against inflation. MicroStrategy’s heavy investment reflects this stance, as the company aims to establish Bitcoin as a core asset on its balance sheet.

If successful, the 21/21 Plan could not only elevate MicroStrategy’s Bitcoin position but also demonstrate a large-scale model for corporate Bitcoin investment. With each strategic purchase, the company deepens its commitment to Bitcoin, an approach that will likely continue to attract attention in both crypto and traditional finance circles.