Michael Saylor’s MicroStrategy has announced an ambitious plan to raise $42 billion over the next three years to further accumulate Bitcoin. This initiative, dubbed the “21/21 plan,” aims to secure $21 billion through equity offerings and an additional $21 billion through fixed-income securities, as stated by the firm on October 30.
At current Bitcoin prices, $42 billion would enable MicroStrategy to acquire approximately 578,586 BTC, representing around 2.7% of the total Bitcoin supply. The firm’s strategy underscores its commitment to increasing its holdings and reinforcing its position as a major player in the cryptocurrency market.
Phong Le, MicroStrategy’s president and CEO, elaborated on the rationale behind this initiative, stating, “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.” Currently, MicroStrategy reports a year-to-date Bitcoin yield of 17.8%, with ambitions to maintain an annual yield of between 6% and 10% from 2025 to 2027.
The announcement has garnered positive feedback from crypto commentators. BitcoinMiningStockGuy expressed a bullish outlook, noting that raising $21 billion is akin to the total market capitalization of all public miners combined. Similarly, quant volatility researcher Ryan McGinnis described the plan as achieving “escape velocity,” highlighting the significant competitive advantage it may provide.
“The only question is how wide will the gap be between MSTR, every other PubCo on Earth combined, and even countries,” McGinnis remarked, alluding to MicroStrategy's growing dominance in the Bitcoin space.
This plan follows MicroStrategy's recent convertible senior notes offering, which raised approximately $1.01 billion at a 0.625% interest rate due in 2028. The firm has indicated that a portion of these proceeds will also be allocated for Bitcoin acquisitions, further solidifying its treasury strategy.
In addition to its Bitcoin-focused initiatives, MicroStrategy's stock performance has also been noteworthy. According to reports, MicroStrategy’s stock has increased by over 1,500% since 1999, outperforming Microsoft’s 1,460% gains over the same 25-year period.
MicroStrategy's ambitious 21/21 plan marks a significant step in its strategy to dominate the Bitcoin market. With substantial capital raising efforts underway and a clear vision for increasing its Bitcoin holdings, MicroStrategy continues to set the pace for institutional investment in the cryptocurrency space. As the firm moves forward with its plans, the implications for the broader market could be profound, reinforcing the importance of Bitcoin as a treasury reserve asset.