The US-listed company Bitcoin holding giant MicroStrategy (MicroStrategy) announced its Q3 2024 financial results on the 30th, showing that as of the end of Q3, the company held 252,220 Bitcoins, with a year-to-date Bitcoin return of 17.8%, and the company plans to achieve an annual Bitcoin return of 6% to 10% between 2025 and 2027.
Raising $42 billion to buy more Bitcoins
In addition, MicroStrategy has announced the launch of the "21/21 Plan", under the leadership of Executive Chairman Michael Saylor, the company will raise $21 billion in equity financing and issue $21 billion in bonds over the next three years, a total of $42 billion, to purchase more Bitcoins.
Currently, $42 billion is equivalent to approximately 578,586 BTCs, accounting for 2.7% of the total Bitcoin supply.
Previously, MicroStrategy founder Michael Saylor had said that the company's ultimate goal is to become the leading Bitcoin bank and grow into a company worth trillions of dollars, and it now appears that he is really moving towards this goal.
MicroStrategy announces $42 billion capital plan including $21 billion ATM equity offering and a target of raising $21 billion in fixed-income securities. Join us at 5pm ET as we discuss our quarterly results and #Bitcoin Treasury Company plans. $MSTR https://t.co/eXYELbN1Dm
— Michael Saylor
(@saylor) October 30, 2024
MicroStrategy President and CEO Phong Le said that this move is to enhance the company's Bitcoin returns:
As a Bitcoin treasury company, we plan to use the additional capital to purchase more Bitcoins as a treasury reserve asset so that we can achieve higher Bitcoin returns.
Commentator BitcoinMiningStockGuy expressed optimism about the news, noting that $21 billion "is equivalent to the total market capitalization of all listed mining companies", and quantitative volatility researcher Ryan McGinnis also commented on the plan, believing that it will allow the company to achieve "escape velocity":
It's over, we've reached escape velocity, the only question is how big the gap between MicroStrategy and the total Bitcoin holdings of all other listed companies, or even countries.
Continuing to Advance Bitcoin Strategy
MicroStrategy is continuing to advance its Bitcoin holding strategy, as the company had just announced in September the issuance of $875 million in convertible preferred bonds, and indicated that in addition to redeeming the $500 million convertible bonds issued earlier, the funds will continue to be used to purchase Bitcoins, which is the company's third bond issuance in 2024.
Since 1999, MicroStrategy's stock price has risen more than 1,500%, while Microsoft's increase during the same period was 1,460%.
According to the latest statistics from bitcointreasuries, MicroStrategy currently holds 252,220 Bitcoins, with a holding value of $18.2 billion, a total cost of $9.9 billion, and unrealized gains of $8.3 billion, while the US government, which holds the most among countries, holds 207,189 Bitcoins, less than MicroStrategy.
