MicroStrategy Plans to Raise $42 Billion to Buy More Bitcoin

The company will use $21 billion of equity and $21 billion of fixed income securities to buy more Bitcoin.

2 min read

Oct 30, 2024

Bitcoin development company MicroStrategy today reported a loss with its latest quarterly results—but the company is going all-in on the orange coin.

In a Wednesday announcement, the company (NASDAQ: MSTR) said it plans to raise $42 billion of capital over the next three years to buy more Bitcoin. The strategy is part of the firm's “21/21 Plan,” MicroStrategy CEO Pong Le said in a statement, in which $21 billion would come from equity raises and another $21 billion would be sold as fixed income securities.

MicroStrategy is already the largest publicly traded holder of Bitcoin, with 252,220 coins, today valued at $18.2 billion. Le said today the company has no plans on slowing down and would continue buying 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,” he said.

In the company’s earning statement Wednesday, MicroStrategy posted revenue of $116.1 million—a 10% drop year-over-year, falling short of analyst expectations. Its net loss stood at $340 million, compared to a loss of $143.4 million in Q3 of last year.

Formerly a quiet software company, Tyson, Virginia-based MicroStrategy now securitizes Bitcoin. Investors use the company’s stock as a proxy for Bitcoin: those who don’t want to buy the cryptocurrency via exchanges or the newly approved exchange-traded funds can buy equity in the company to get exposure to the orange coin.

The firm first bought Bitcoin in 2020 to maximize returns for shareholders and hasn’t stopped buying the cryptocurrency since.

Bitcoin is now trading for $72,209, according to CoinGecko, after having jumped 9% in seven days.

MicroStrategy stock is today down over 4%, trading hands for $247.31 a pop.

Get crypto news straight to your inbox--

sign up for the Decrypt Daily below. (It’s free).

Get Email!

Decrypt’s 2024 Project of the Year: Solana Meme Machine Pump.fun

It started on a whim. Two devs, a laptop, and an idea to develop a platform for launching crypto tokens fairly, cheaply, and easily—all while minimizing the risk of scams. The product wasn’t perfect—far from it. And after launching in January, it arguably led to more crypto scams than would have existed without it; they just looked different. But by the end of the year, the Solana meme coin launchpad Pump.fun had become undeniably the most culturally significant crypto project of the year. Maybe...

Top College Football Pick Inks Bitcoin Contract With University of South Carolina

Top college football prospect Matai Tagoa’i is set to join football stars like Russell Okung, Odell Beckham Jr., and Trevor Lawrence by receiving his compensation in Bitcoin. The linebacker will be paid part of his earnings via the Strike app after signing a “name, image, and likeness” (NIL) deal with the University of Southern California (USC). The exact details of his package are not known, but some college football players, such as Shedeur Sanders, have received estimated payouts of up to $4....

Tornado Cash Dev Wants Charges Dropped Because Sanctions Deemed Illegal

Roman Storm, co-founder of crypto-mixing platform Tornado Cash, hopes to have charges against him dropped after sanctions against his software were dropped. In Storm’s Dec. 18 motion to dismiss, he cites the recent Fifth Circuit ruling that the Treasury's Office of Foreign Assets Control (OFAC) overstepped by sanctioning Tornado Cash’s immutable smart contracts. The ruling recognized that autonomous software that no one controls cannot be classified as property. The ruling, the document reads, “...

News

Courses

Deep Dives

Coins

Videos