Hassan Maishera
TL;DR
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Michael Saylor-led MicroStrategy plans to raise $42B to purchase more bitcoins.
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The company currently holds 252,220 bitcoins acquired for a total of $9.9 billion or an average price of $39,266 each.
MicroStrategy to Raisse $42B to Purchase More Bitcoins
Software company MicroStrategy (MSTR) has unveiled a plan to raise $42 billion of capital over the next three years to purchase more bitcoins.
Currently, MicroStrategy is one of the world's largest institutional Bitcoin holders and is working to cement its position as a leading Bitcoin investor. Led by Executive Chairman Michael Saylor, MicroStrategy unveiled the "21/21 Plan".
The plan will see the company raise $21 billion in equity and an additional $21 billion in debt offerings over the next three years. MicroStrategy intends to use the funds to purchase more bitcoins.
While revealing this during the company’s third quarter earnings press release, Phong Le, president and CEO, said,
"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.”
In September, MicroStrategy purchased 7,420 bitcoins (BTC) for $458.2 million, bringing its total holdings to 252,220 bitcoins, acquired for a total of $9.9 billion, or an average price of $39,266 each.
At Bitcoin’s current price of $72,435, MicroStrategy’s Bitcoin is worth over $18 billion. At the end of the third quarter, the company still had $891.3 million remaining from its previous capital raise.
