New York, Thursday, October 31, 2024-Enterprise software firm MicroStrategy, the biggest Bitcoin holder again yesterday announced that it had enlisted banks to assist in raising $42 billion through new stock and fixed-income sales to expand its cryptocurrency reserves.
The “21/21 Plan” could see the company generating $21 billion from stock sales and an additional $21 billion from fixed-income securities to fund its ongoing bitcoin strategy in its three year plan.
“Our focus remains to increase value generated to our shareholders by leveraging the digital transformation of capital. Today, we are announcing a strategic goal of raising $42 billion of capital over the next 3 years, comprised of $21 billion of equity and $21 billion of fixed income securities, which we refer to as our “21/21 Plan.” 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, MicroStrategy,” MicroStrategy said in its Q3 earnings report.
Enterprise software maker MicroStrategy of Michael Saylor has enlisted several banks to manage an at-the-market stock offering that could raise up to $21 billion, alongside potential fixed-income security sales targeting an additional $21 billion.
However, the company clarified that it might not raise the full $21 billion through stock immediately or at all, as companies with at-the-market offerings often proceed gradually, depending on market conditions.
In Q3, MicroStrategy raised $2.1 billion through equity and debt offerings, following $800 million raised in the second quarter.
The company reported a year-to-date stock surge of nearly 500%, significantly outpacing bitcoin’s 110% gain over the same period.
However, the announcement of the ambitious fundraising plan put pressure on MicroStrategy’s stock in after-hours trading as market observers expressed cautious optimism regarding the plan.
