- MicroStrategy will raise $42 billion in equity and fixed income capital solely to buy more Bitcoin
- The company already holds a whopping $18 billion worth of BTC
American software company MicroStrategy has undoubtedly become one of the most bullish companies in the world on Bitcoin (BTC). The company has announced that it plans to raise as much as $42 billion over the next three years solely to invest in its digital gold. The investment mainly depends on whether or not the company will be able to raise the capital in shares and fixed income securities.
In an announcement during the release of their third quarter financial report, the company said said,
“announcement of a strategic goal to raise $42 billion in capital over the next three years, consisting of $21 billion in equities and $21 billion in fixed income, which we call our “21/21 Plan.” As a Bitcoin Treasury Company, we plan to use the additional capital to purchase more Bitcoin as treasury reserves in a manner that will allow us to achieve higher BTC returns.”
Read Bitcoin’s [BTC] Price forecast 2024–2025
MicroStrategy: Betting Billions of Dollars on Bitcoin
Interestingly, the announcement comes days after the company’s share price hit a 25-year high of $236, with a market capitalization of $47 billion. Several market speculators take credit for BTC’s recent rise. Moreover, the company is already one of the largest institutional investors in digital gold. To date, the company’s Bitcoin reserves exceed 150,000.
The company has not made any additional Bitcoin purchases since mid-September. The company last bought another 7,420 BTCs for $458.2 million. Notably, even though MicroStrategy plans to add another $42 billion worth of Bitcoins to its profile, its current BTC holdings are over $18 billion.
Despite the bullish announcement, Bitcoin’s price has not made any significant move in the past hour. According to CoinMarketCap, the coin was trading at $72,694.31 with a market cap of $1.44 trillion at the time of writing. The coin has registered an uptrend of over 9% on the 7-day chart, with current trading volume at over $40.80 billion.
Next, MicroStrategy is not the only permanent member of the Bitcoin team. The coin is already present in the treasury of one of the most prominent car companies: Tesla. In addition, it was also revealed that Emory University owns $16 million worth of Bitcoin and Coinbase stock. Multinational software company – Microsoft also announced that it would vote in December 2024 on whether to invest in digital gold.
