30s Summary
MicroStrategy plans to amass $42bn over the next three years to buy more Bitcoin, in a move titled the “21/21 plan” which involves generating $21bn in equity and $21bn in fixed-income securities. The company, a Bitcoin Treasury Company, believes the move will enable the enhancement of its profits from Bitcoin holdings. The aim is to achieve an annual Bitcoin yield of between 6% and 10% from 2025 to 2027. Presently, MicroStrategy’s yield is 17.8%.
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MicroStrategy, led by Michael Saylor, is setting up to gather a whopping $42 billion over the next three years to buy even more Bitcoin. They’re calling this move the “21/21 plan”. The idea is to bring in $21 billion in equity and another $21 billion in fixed-income securities over three years’ time, states a MicroStrategy announcement made on October 30.
To put that into perspective, right now, $42 billion in Bitcoin equates to roughly 578,586 BTC, which makes up about 2.7% of all the Bitcoin in the world.
MicroStrategy’s big cheese, Phong Le, brings us up to speed that the whole idea behind this is to boost the company’s gains from holding onto Bitcoin. Phong explains, “As we’re a Bitcoin Treasury Company, we plan to use this extra cash to buy even more Bitcoin. We expect this will enable us to pull in a higher BTC yield.”
As of now, the company has said that its current BTC yield for this year is “17.8%”. Their goal is to pull in an annual BTC yield of between 6% and 10% from 2025 to 2027.
A commentator in the crypto world, BitcoinMiningStockGuy, is feeling super positive about this news, especially since $21 billion is roughly the total market cap of all the public miners combined. At the same time, a researcher specializing in market volatility, Ryan McGinnis, voiced his thoughts that this plan is “escape velocity”. He muses, “The only question is how wide will the gap be between MSTR, every other public company on the planet combined, and even entire countries.”
In other related news, back in September, MicroStrategy completed an offering of around $1.01 billion worth of 0.625% convertible senior notes due in 2028. They’re planning to use some of the proceeds to buy even more Bitcoin. The private offering, which ended on Sept. 19, was aimed at institutional investors and allowed for conversion into cash or MicroStrategy stock.
Just a little side note – on Oct. 25, Cointelegraph reported that MicroStrategy’s growth has exceeded 1,500% since 1999 compared to Microsoft’s 1,460% gains during the same 25-year period.
Source: Cointelegraph