MicroStrategy set to raise $42 billion over 3 years to buy Bitcoin

Source Fxstreet
  • MicroStrategy announced its plans to raise $42 billion of capital over the next 3 years to acquire more Bitcoin.
  • The capital will comprise $21 billion of equity and $21 billion of fixed-income securities.
  • MicroStrategy also announced its Q3 income, with a total revenue of $116 million.

MicroStrategy released its third quarter (Q3) financial report on Wednesday. The report revealed its 17.8% BTC yield year-to-date and discussed the company's plan to raise $42 billion to acquire more of the top cryptocurrency.

MicroStrategy continues plans to acquire more Bitcoin

Business intelligence firm, MicroStrategy, announced its financial report for Q3, which ended on September 30. The report indicated the company increased its Bitcoin holding by 11% in September, pushing its BTC yield year-to-date to 17.8%.

In the third quarter, MicroStrategy secured $2.1 billion through a combination of equity and debt financing. Its current Bitcoin holdings stand at 252,220 BTC.

In correlation with the financial data, the firm included its plans to raise capital of $42 billion within the next 3 years as part of its 21/21 financial plan. The capital, which will comprise $21 billion of equity and $21 billion of fixed-income securities, will be used to buy more 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," said Phong Le, President and Chief Executive Officer of MicroStrategy.

The company continues to show an increased desire to become the leading treasury firm for Bitcoin, as it is currently the largest corporate holder of the digital asset.

MicroStrategy began its aggressive Bitcoin acquisition strategy in August 2020, following a restructuring of its corporate treasury approach that positioned the leading cryptocurrency as a central asset in its portfolio.

Its use of the BTC yield as a Key Performance Indicator (KPI) has begun influencing other firms, including Japanese investment firm Metaplanet, which announced that it will begin using Bitcoin yield as a tool to assess the performance of its strategy for acquiring more BTC.

Disclaimer: For information purposes only. Past performance is not indicative of future results.
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