MicroStrategy plans to use 42B dollar in additional capital to buy Bitcoin
The largest corporate bitcoin holder, MicroStrategy, published its third quarter financial results on Wednesday, October 30th. Plans to raise $42 billion in capital to buy more Bitcoin (BTC) were also disclosed by the business intelligence firm.
The company aims to facilitate additional Bitcoin purchases as part of its treasury reserve strategy.
MicroStrategy to acquire additional Bitcoin with $42 billion capital
Bitcoin development firm MicroStrategy announced its "21/21 Plan," which calls for $42 billion in capital over the next three years, evenly divided between $21 billion in fixed-income securities and $21 billion in equity.
President and CEO Phong Le stated, "Q3 was another pivotal quarter for us." “Our focus remains on leveraging digital assets to drive shareholder value, and our 21/21 Plan sets a clear path for future growth.”
"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 a higher BTC yield,” Phong Le added.
MicroStrategy announces third quarter 2024 financial results
All of the company's class A and class B common stock were split ten to one on August 7, 2024. To account for the stock split, all previous period share and per share data has been retroactively adjusted.
The company issued 0.625% convertible senior notes due 2028 with an initial conversion price of $183.19 per share of class A common stock, totaling $1.010 billion in principal amount, in September 2024.
The company announced a new At-the-Market Equity Offering Program on October 30, 2024, which allows MicroStrategy to occasionally issue and sell shares of its class A common stock with an aggregate offering price of up to $21 billion.
MicroStrategy holds approximately 252,220 BTC
MicroStrategy owned about 252,220 BTC with a market value of $16 billion as of September 30. In order to evaluate the performance of its bitcoin strategy, the company reported a year-to-date BTC yield of 17.8%, and the "BTC Yield" increased by 5.1%. The company also increased its bitcoin holdings by 11%, lowered yearly interest costs by $24 million, and raised $2.1 billion through debt and equity in the third quarter.
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