Bitcoin-bull firm MicroStrategy has announced its new plan to further increase its Bitcoin (BTC) balance.
MicroStrategy, a business intelligence firm led by Michael Saylor, has become one of the most prominent institutional supporters of Bitcoin. Since 2020, the company has consistently increased its Bitcoin holdings as a hedge against inflation, viewing BTC as a more reliable store of value than traditional assets. With over 252,220 BTC on its balance sheet, MicroStrategy’s strategy is rooted in a long-term belief in Bitcoin’s growth potential. This aggressive accumulation has made the company a well-known advocate in the crypto space, encouraging other corporations to consider Bitcoin as a strategic reserve asset.
On October 31, 2024, the Nasdaq-listed public firm MicroStrategy announced a strategic goal to raise $42 billion in capital over the next three years, with plans to divide this evenly between $21 billion in equity and $21 billion in fixed-income securities. The company intends to use this additional capital to purchase more Bitcoin as a treasury reserve asset, aiming to do so in a way that would enable it to achieve a higher BTC investment returns.
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
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Through the earnings call report, MicroStrategy Chief Financial Officer Andrew Kang stated that through its treasury strategy, MicroStrategy increased Bitcoin holdings by 11% in the last quarter, raised the year-to-date BTC yield to 17.8%, and reduced total annualised interest expenses by $24 million.
MicroStrategy ($MSTR) Stock Price Action
The current trade price of $MSTR is $247, down 2.23% over the last 24-hour period.
Recently, MicroStrategy’s former CEO Michael Saylor endorsed former U.S. President Donald Trump, Bitcoin friendly US presidential candidate, as the U.S. presidential election date is approaching.
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MicroStrategy Announces Plan to Raise $42 Billion to Buy More Bitcoin in the Future
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