MicroStrategy Wants to Raise $42 Billion Over the Next 3 Years to Accumulate More Bitcoin
MicroStrategy says its Bitcoin investment returns so far in 2024 are 17.8%, and it wants to build on that success by raising more capital.
Software company MicroStrategy released its Q3 2024 earnings report early on October 31, with several notable updates.
In the last quarter, the company posted $116.1 million in revenue, $8 million below its forecast, citing lower sales and ancillary cash flows. Operating expenses were $514.3 million, meaning a loss of $340 million in Q3.
On the other hand, MicroStrategy has raised $2.1 billion from issuing stocks and bonds, increasing its Bitcoin holdings by 11% and reducing its annual interest payments by $24 million.
As of September 30, 2024, MicroStrategy holds 252,200 Bitcoins, with a real value of $18.2 billion. The company's BTC investment return, calculated by the BTC Yield Index, as of the current year of 2024 is 17.8%, up 5.1% from the Q2 report.
Notably, the company has announced its “21/21 Plan”, which plans to raise $42 billion over the next three years, divided equally between equity and fixed income debt securities. The proceeds will continue to serve the company's Bitcoin buying strategy.
MicroStrategy announces $42 billion capital plan including $21 billion ATM equity offering and a target of raising $21 billion in fixed-income securities. Join us at 5pm ET as we discuss our quarterly results and #Bitcoin Treasury Company plans. $MSTR https://t.co/eXYELbN1Dm
— Michael Saylor⚡️ (@saylor) October 30, 2024
MicroStrategy also revised its estimated BTC Yield for 2025-2027 to between 6% and 10% per year, up from the 4% to 8% per year reported in the previous quarter.
MicroStrategy's MSTR stock price has surged 250% this year, outpacing the performance of BTC and ETH. The company's founder, billionaire Michael Saylor, has repeatedly stated in recent statements that Bitcoin's price could reach $13 million per coin by 2045.
BTC's price in October is up nearly 14%, bringing the world's largest cryptocurrency to $73,600 and approaching its all-time high, with momentum coming from relentless buying from Bitcoin ETFs with more than $4.7 billion accumulated in just the past 2 weeks.
