MicroStrategy to raise $42B to buy Bitcoin in ‘21/21 plan’

From cointelegraph by Ciaran Lyons 

Michael Saylor’s MicroStrategy is gearing up to raise $42 billion over the next three years to accumulate more Bitcoin, the firm revealed.

The plan, dubbed the “21/21 plan,” will consist of $21 billion in equity and $21 billion in fixed-income securities over the next three years, according to a  statement  from MicroStrategy on Oct. 30.

At the time of publication, $42 billion in Bitcoin  BTC$72,103  is equivalent to about 578,586 BTC, accounting for 2.7% of the total Bitcoin supply.

Move to capitalize on BTC returns

MicroStrategy’s president and CEO, Phong Le, said the move would bolster the firm’s returns from holding Bitcoin. 

“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,” Phong said.

MicroStrategy reported that its current BTC year-to-date yield is “17.8%,” with plans to achieve an annual BTC yield of 6% to 10% between 2025 and 2027.

Crypto commentator BitcoinMiningStockGuy said that he was “bullish” on the news after pointing out that $21 billion “is like the total market cap of all the public miners combined.”

Meanwhile, quant volatility researcher Ryan McGinnis  weighed  in on the plan, saying that it is “escape velocity.”

“The only question is how wide will the gap be between MSTR, every other PubCo on Earth combined, and even countries,” he wrote.

This comes after McGinnis  said  on March 6 that MicroStrategy was a “Monopoly of Value.”

MicroStrategy’s recent convertible senior notes plan

In September, MicroStrategy completed a $1.01 billion offering of 0.625%  convertible senior notes due in 2028 , with plans to use a portion of the proceeds for Bitcoin acquisition.

The private offering, which concluded on Sept. 19, targeted institutional investors and enabled the conversion into cash or MicroStrategy stock.

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Cointelegraph reported on Oct. 25 that MicroStrategy has increased over 1,500%  since 1999, compared to Microsoft’s  1,460% gains during the same 25-year period.

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