The largest corporate holder of Bitcoin (BTC) just announced a new $42 billion plan to accumulate more of the flagship digital asset.
In a new press release, MicroStrategy President and chief executive Phong Le says the company’s “21/21 Plan” aims to raise $21 billion in equity and $21 billion in fixed income securities over the next three years.
“Our focus remains to increase value generated to our shareholders by leveraging the digital transformation of capital…. 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.”
MicroStrategy’s year-to-date BTC yield – the company’s key performance indicator for assessing the performance of its Bitcoin acquisition strategy – is 17.8%. The firm says it is revising its long-term target to achieve a BTC Yield of 6% to 10% per year from 2025 to 2027.
MicroStrategy has a market capitalization of $49.54 billion, which means that the $42 billion it plans to allocate to purchase Bitcoin represents nearly 85% of its market value.
As of September 30th, the company holds around 252,220 BTC worth $16.007 billion. MicroStrategy purchased the crypto assets for $9.904 billion, or for an average cost of approximately $39,266 per Bitcoin.
The top crypto asset by market cap is trading for $70,124 at time of writing, a marginal decrease during the last 24 hours.
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