MicroStrategy’s strategy to increase its Bitcoin investment fourfold may significantly alter the dynamics of market supply and demand.
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MicroStrategy has announced an ambitious three-year plan to raise $42 billion in capital to significantly expand its Bitcoin holdings, as revealed in a statement on October 30.
Known as the “21/21 Plan,” the strategy aims to raise $21 billion through equity and another $21 billion through debt. The funds will be used to grow the company’s Bitcoin reserves.
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MicroStrategy’s President and CEO, Phong Le, offered insight into the company’s goals, emphasizing the focus on enhancing shareholder value by capitalizing on the digital transformation of capital. He explained:
“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.”
This plan marks a major escalation in MicroStrategy’s commitment to Bitcoin. If executed at current prices, the $42 billion would enable the company to acquire approximately 580,000 BTC, which represents about 2.7% of Bitcoin’s total supply.
Given that 450 new Bitcoin are mined daily and with the next halving anticipated in March 2028, around 1,243 days from now, MicroStrategy’s aggressive buying strategy could potentially consume nearly all newly mined Bitcoin during this period.
This approach would result in continuous daily buy pressure of $40 million over three years, a dynamic that could significantly influence Bitcoin’s supply-demand equilibrium.
Presently, MicroStrategy holds around 252,220 BTC, equivalent to 1.2% of the total supply, valued at approximately $16 billion. The company initially invested $9.9 billion in Bitcoin, with an average acquisition cost of $39,266 per BTC. By committing to this $42 billion expansion, the firm is set to more than quadruple its investment in Bitcoin, further cementing its status as a Bitcoin-first enterprise.
Bitcoin Yield
In light of MicroStrategy’s bold intentions regarding Bitcoin acquisitions, the firm has adjusted its projected BTC yield for the years 2025 to 2027, now estimating a more conservative range of 6% to 10%. This modification indicates a shift towards a more prudent perspective on anticipated returns.
The BTC yield is a vital measure of the company’s ability to create shareholder value through its investments in Bitcoin. Under the leadership of Michael Saylor, MicroStrategy has achieved a notable year-to-date BTC yield of 17.8%.
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