MicroStrategy, led by founder Michael Saylor, has announced a new plan to raise $42 billion over the next three years to further strengthen its Bitcoin holdings. Known as the “21/21 Plan,” this ambitious strategy will use $21 billion in equity and $21 billion in fixed-income securities to amass more Bitcoin as part of the company’s ongoing commitment to the cryptocurrency.
Details of the “21/21 Plan”
As of October 30, MicroStrategy’s target amount of $42 billion would secure approximately 578,586 BTC, which represents around 2.7% of Bitcoin’s total supply. This move aims to significantly increase the company’s Bitcoin yield and strengthen its standing among public and private entities in the crypto space.
Phong Le, MicroStrategy’s CEO, explained that the decision aligns with the company’s long-term strategy to use Bitcoin as a treasury reserve asset. “Our goal is to enhance our returns from Bitcoin, with an expected yield between 6% and 10% annually by 2025 to 2027,” said Phong. Currently, the firm’s Bitcoin holdings deliver a year-to-date yield of 17.8%, positioning it as a leading institutional Bitcoin holder.
Community Reactions and Bullish Sentiment
Crypto analysts and commentators have largely reacted positively to MicroStrategy’s announcement. Influential Twitter figure “BitcoinMiningStockGuy” highlighted that the scale of the $21 billion investment surpasses the total market capitalization of all publicly traded crypto miners combined. Quant researcher Ryan McGinnis emphasized that the move gives MicroStrategy “escape velocity,” projecting that the company will outpace other publicly listed companies—and potentially even entire countries—in Bitcoin holdings.
McGinnis had previously called MicroStrategy a “Monopoly of Value,” and this latest plan appears to support that claim as the firm intensifies its dominance in the crypto treasury space.
MicroStrategy’s Growing Bitcoin Portfolio
The “21/21 Plan” follows MicroStrategy’s recent financial maneuvers, including a $1.01 billion convertible senior notes offering in September, which attracted institutional investors. With an interest rate of 0.625% and a due date in 2028, these notes are part of a strategy that allows for conversion into cash or MicroStrategy stock, ensuring additional capital flexibility for Bitcoin purchases.
Notably, MicroStrategy’s stock has surged over 1,500% since its initial public offering in 1999, surpassing even Microsoft’s 1,460% growth during the same period. This long-term growth, coupled with the 21/21 Plan, suggests a bold path forward for the company as it seeks to further solidify its status as a major player in the Bitcoin market.
