MicroStrategy, led by Michael Saylor, has launched an ambitious plan to raise $42 billion over three years for Bitcoin acquisition. This goal aligns with the firm’s reputation as the largest corporate Bitcoin holder, positioning itself as a leader in the Bitcoin treasury space.
The “21/21 Plan,” detailed by CEO Phong Le, aims to secure $21 billion each in equity and fixed income, all directed at accumulating more Bitcoin. MicroStrategy’s Q3 2024 results showed impressive Bitcoin growth, with its holdings increasing by 11% in the quarter alone.
This firm’s treasury strategy has been able to make a BTC yield of 17.8% in the year-to-date, marking its dedication to growing profits. CFO Andrew Kang pointed to the company’s smart leverage, which reduced yearly interest expenses by $24 million as the key advantage.
As of Sept. 30, MicroStrategy had Bitcoin assets valued at $6.85 billion, and its BTC holding market cap was more than $16 billion. The average cost was $39,266 per BTC. With the current market price per coin at $63,463, MicroStrategy’s long-term gains are substantial.
Bitcoin yield target set at 6%-10% for sustainable gains
The company is further committed to a target BTC yield of between 6% and 10% until the year 2027, thereby committing to a predictable return growth rate of dividends to stockholders.
The firm has recently completed a 10-for-1 stock split in August, which also shows new MicroStrategy strategies in terms of equity. Besides, it reveals another $21 billion “At-the-Market” equity offering that will create more efficiency for MicroStrategy’s Bitcoin endeavours.
Its core software business took a hit despite its solid BTC strategy, with total revenues decreasing by 10.3% YOY to $116.1 million. The profit margin made the company worsen its position. The gross margin was raised from 79.4% to 70.4% due to the high operations costs and asset impairments.
Despite software struggles, MicroStrategy’s loyalty to Bitcoin is undeterred. It is looking to create long-term value for shareholders and profit from digital asset growth.
