{"id":174100,"date":"2024-10-31T11:43:27","date_gmt":"2024-10-31T11:43:27","guid":{"rendered":"https:\/\/crypto-economy.com\/?p=174100"},"modified":"2024-10-31T11:43:32","modified_gmt":"2024-10-31T11:43:32","slug":"microstrategy-aims-to-boost-bitcoin-holdings-by-raising-42-billion-by-2027","status":"publish","type":"post","link":"https:\/\/crypto-economy.com\/microstrategy-aims-to-boost-bitcoin-holdings-by-raising-42-billion-by-2027\/","title":{"rendered":"MicroStrategy Aims to Boost Bitcoin Holdings by Raising $42 Billion by 2027"},"content":{"rendered":"<p style=\"text-align: justify\"><span data-preserver-spaces=\"true\">TL;DR<\/span><\/p>\n<ul style=\"text-align: justify\">\n<li><strong><span data-preserver-spaces=\"true\">MicroStrategy plans to raise $42 billion by 2027<\/span><\/strong><span data-preserver-spaces=\"true\"> to expand its Bitcoin holdings, aiming to increase shareholder value through the digital transformation of capital.<\/span><\/li>\n<li><strong><span data-preserver-spaces=\"true\">The company successfully raised $2.1 billion in Q3 2024, <\/span><\/strong><span data-preserver-spaces=\"true\">increasing its Bitcoin holdings by 11%, despite a 10.3% decrease in total revenues.<\/span><\/li>\n<li><strong><span data-preserver-spaces=\"true\">MicroStrategy&#8217;s strategy includes leveraging equity and debt financing to accumulate Bitcoin<\/span><\/strong><span data-preserver-spaces=\"true\"><span data-preserver-spaces=\"true\">, achieve a higher BTC yield, and solidify its position as a leading corporate Bitcoin holder.<\/span><\/span><br \/>\n<hr \/>\n<\/li>\n<\/ul>\n<p style=\"text-align: justify\"><strong><span data-preserver-spaces=\"true\">MicroStrategy,<\/span><\/strong><span data-preserver-spaces=\"true\"> the world&#8217;s largest corporate Bitcoin holder, <\/span><strong><span data-preserver-spaces=\"true\">has <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.microstrategy.com\/press\/microstrategy-announces-third-quarter-2024-financial-results-and-announces-42-billion-capital-plan_10-30-2024\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">unveiled<\/span><\/a><span data-preserver-spaces=\"true\"> an ambitious plan to raise $42 billion over the next three years to significantly expand its <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/crypto-economy.com\/cryptocurrencies\/bitcoin-news\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">Bitcoin<\/span><\/a><span data-preserver-spaces=\"true\"> holdings<\/span><\/strong><span data-preserver-spaces=\"true\">. The announcement was made during the company&#8217;s Q3 2024 financial results presentation, where CEO Phong Le introduced the &#8220;21\/21 Plan.&#8221; <\/span><!--more--><\/p>\n<p style=\"text-align: justify\"><strong><span data-preserver-spaces=\"true\">This strategic initiative involves raising $21 billion in equity and an additional $21 billion through fixed-income securities<\/span><\/strong><span data-preserver-spaces=\"true\">. The primary goal of this fundraising effort is to increase shareholder value by leveraging the digital transformation of capital. <\/span><\/p>\n<p style=\"text-align: justify\"><span data-preserver-spaces=\"true\">Phong Le emphasized that the raised capital would be used to acquire more Bitcoin as a treasury reserve asset. <\/span><\/p>\n<blockquote>\n<p style=\"text-align: center\"><span data-preserver-spaces=\"true\">&#8220;Our focus remains to increase the value generated to our shareholders by leveraging the digital transformation of capital,&#8221; stated Le during the announcement.<\/span><\/p>\n<\/blockquote>\n<p style=\"text-align: justify\"><span data-preserver-spaces=\"true\">The company aims to achieve a higher BTC yield, targeting an annual yield of 6% to 10% between 2025 and 2027.<\/span><\/p>\n<h2 style=\"text-align: left\"><span data-preserver-spaces=\"true\">MicroStrategy&#8217;s Recent Financial Performance<\/span><\/h2>\n<p><img fetchpriority=\"high\" decoding=\"async\" class=\"alignnone size-full wp-image-174101\" src=\"https:\/\/crypto-economy.com\/\/wp-content\/uploads\/2024\/10\/MicroStrategyBTCHoldings.jpg\" alt=\"MicroStrategy Aims to Boost Bitcoin Holdings by Raising $42 Billion by 2027\" width=\"825\" height=\"300\" srcset=\"https:\/\/crypto-economy.com\/\/wp-content\/uploads\/2024\/10\/MicroStrategyBTCHoldings.jpg 825w, https:\/\/crypto-economy.com\/\/wp-content\/uploads\/2024\/10\/MicroStrategyBTCHoldings-300x109.jpg 300w, https:\/\/crypto-economy.com\/\/wp-content\/uploads\/2024\/10\/MicroStrategyBTCHoldings-768x279.jpg 768w\" sizes=\"(max-width: 825px) 100vw, 825px\" \/><\/p>\n<p style=\"text-align: justify\"><strong><span data-preserver-spaces=\"true\">MicroStrategy&#8217;s Q3 2024 financial results highlighted the company&#8217;s ongoing commitment to its <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/crypto-economy.com\/what-is-bitcoin\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">Bitcoin<\/span><\/a><span data-preserver-spaces=\"true\"> strategy.<\/span><\/strong><span data-preserver-spaces=\"true\"> The company successfully raised $2.1 billion through equity and debt offerings during the quarter, increasing its Bitcoin holdings by 11%.<\/span><\/p>\n<p style=\"text-align: justify\"><span data-preserver-spaces=\"true\">Despite a 10.3% year-over-year decrease in total revenues to $116.1 million, the company&#8217;s subscription services revenues increased by 32.5% to reach $27.8 million. <\/span><strong><span data-preserver-spaces=\"true\">The company&#8217;s gross profit stood at $81.7 million with a 70.4% margin<\/span><\/strong><span data-preserver-spaces=\"true\">.<\/span><\/p>\n<h2 style=\"text-align: left\"><span data-preserver-spaces=\"true\">Strategic Bitcoin Accumulation<\/span><\/h2>\n<p style=\"text-align: justify\"><span data-preserver-spaces=\"true\">MicroStrategy&#8217;s strategy for accumulating Bitcoin includes the tactical deployment of funds raised through equity and debt financing, in addition to leveraging operational cash flows. <\/span><strong><span data-preserver-spaces=\"true\">The company has purchased 252,220 Bitcoin over the years<\/span><\/strong><span data-preserver-spaces=\"true\">, with the current value of their holdings standing at <\/span><strong><span data-preserver-spaces=\"true\">$18.27 billion<\/span><\/strong><span data-preserver-spaces=\"true\">.<\/span><\/p>\n<p style=\"text-align: justify\"><span data-preserver-spaces=\"true\">The company&#8217;s last Bitcoin purchase was made on September 20, 2024, when it acquired 7,420 BTC for $458.2 million. Looking ahead, MicroStrategy&#8217;s aggressive capital-raising initiative is expected to further solidify its position as a leading corporate Bitcoin holder. <\/span><\/p>\n<p style=\"text-align: justify\"><span data-preserver-spaces=\"true\">The company&#8217;s strategic focus on Bitcoin accumulation and its innovative fundraising plan underscores its commitment to leveraging digital assets for long-term growth. <\/span><strong><span data-preserver-spaces=\"true\">As Bitcoin&#8217;s price continues to rise, MicroStrategy&#8217;s bold move to raise $42 billion by 2027<\/span><\/strong><span data-preserver-spaces=\"true\"> could set a new standard for corporate investment in cryptocurrencies.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>TL;DR MicroStrategy plans to raise $42 billion by 2027 to expand its Bitcoin holdings, aiming to increase shareholder value through the digital transformation of capital. The company successfully raised $2.1 billion in Q3 2024, increasing its Bitcoin holdings by 11%, despite a 10.3% decrease in total revenues. MicroStrategy&#8217;s strategy includes leveraging equity and debt financing &#8230; <\/p>\n<p class=\"read-more-container\"><a title=\"MicroStrategy Aims to Boost Bitcoin Holdings by Raising $42 Billion by 2027\" class=\"read-more button\" href=\"https:\/\/crypto-economy.com\/microstrategy-aims-to-boost-bitcoin-holdings-by-raising-42-billion-by-2027\/#more-174100\" aria-label=\"More on MicroStrategy Aims to Boost Bitcoin Holdings by Raising $42 Billion by 2027\">Read more<\/a><\/p>\n","protected":false},"author":32,"featured_media":174102,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"rank_math_lock_modified_date":false,"footnotes":""},"categories":[102,100,84,74],"tags":[4602,5536,5383],"_links":{"self":[{"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/posts\/174100"}],"collection":[{"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/users\/32"}],"replies":[{"embeddable":true,"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/comments?post=174100"}],"version-history":[{"count":1,"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/posts\/174100\/revisions"}],"predecessor-version":[{"id":174103,"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/posts\/174100\/revisions\/174103"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/media\/174102"}],"wp:attachment":[{"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/media?parent=174100"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/categories?post=174100"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/tags?post=174100"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}