MicroStrategy Unveils Ambitious $42B Bitcoin Acquisition Strategy in Q3 Earnings Report
The world’s largest corporate bitcoin holder, MicroStrategy (NASDAQ: MSTR), announced a groundbreaking capital raising initiative alongside its third-quarter earnings results on Wednesday. The company plans to raise $42 billion over the next three years through its newly introduced “21/21 Plan,” marking one of the most aggressive corporate bitcoin acquisition strategies to date.
The plan, split evenly between $21 billion in equity and $21 billion in fixed-income securities, aims to substantially increase MicroStrategy’s bitcoin holdings, which currently stand at 252,220 bitcoins valued at approximately $16 billion. The company’s innovative approach has already demonstrated success, with a reported year-to-date BTC Yield of 17.8%.
“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 CEO of MicroStrategy, in the earnings announcement.
The company’s Q3 financial results revealed mixed performance, with total revenues of $116.1 million, falling short of analyst expectations and representing a 10.3% decrease year-over-year. MicroStrategy reported a net loss of $340.2 million, or $1.72 per share, compared to a loss of $143.4 million in the same quarter last year. The wider loss was primarily attributed to $412.1 million in digital asset impairment charges.
Despite these challenges, MicroStrategy has already demonstrated significant progress in its bitcoin acquisition strategy during Q3, raising $2.1 billion through equity and debt offerings while reducing its annual interest expenses by $24 million. The company has revised its BTC Yield target to 6-10% for the period between 2025 and 2027.
The announcement comes at a time when bitcoin’s price has surged above $72,000, contributing to MicroStrategy’s strong market performance. The company’s stock has gained over 250% year-to-date, outperforming many tech sector leaders, though shares declined approximately 8% in after-hours trading following the earnings release.
With a current market capitalization of $50.1 billion, MicroStrategy’s ambitious capital raising plan represents a significant commitment to its bitcoin-focused treasury strategy, potentially positioning the company to own an even larger portion of the total bitcoin supply in the coming years.
