MicroStrategy to Raise $42 Billion to Buy More Bitcoin

MicroStrategy (MSTR), which describes itself as a Bitcoin development company, has not added anything to its bitcoin (BTC) holdings since mid-September. However, in its statement yesterday, the company announced a plan to increase capital of $ 42 billion for the next three years in order to purchase more BTC.

The company’s “21/21 Plan”, led by Chief Executive Officer Michael Saylor, was prepared as a $21 billion equity capital increase and a $21 billion debt offering over the next three years.

Speaking at the press release discussing third quarter earnings, chairman and CEO Phong Le said, “As a Bitcoin Treasury Company, we plan to use additional capital to purchase more bitcoins, which will enable us to achieve higher BTC returns.”

MicroStrategy announced in mid-September that it purchased 7,420 bitcoins for $458.2 million. At the current price of about $72,000, the company’s bitcoin holdings are worth more than $18 billion.

As of the end of the quarter, the company had $891.3 million remaining from the previous capital increase.

Additionally, MicroStrategy revised its “BTC Return” target range from 4%-8% to 6-10%. Created by Saylor and his team, BTC Return is considered a key performance indicator (KPI) by MSTR that indicates how successful the company is at generating bitcoin for shareholders. In the statement made yesterday, BTC Return in the third quarter was stated as 17.8%.

The company’s shares, now normally trading 10% lower, are up nearly 250% since the beginning of the year.