MicroStrategy, led by Michael Saylor, plans to raise $42 billion over the next three years to buy more Bitcoin through its “21/21 Plan.” This initiative aims to gather $21 billion in equity and $21 billion in fixed-income securities. Currently, $42 billion would buy about 578,586 BTC, around 2.7% of Bitcoin’s total supply.
Phong Le, MicroStrategy’s CEO, highlighted that this plan would boost returns from Bitcoin holdings. From 2025 to 2027, the expected annual BTC yield will be between 6% and 10%. The company’s Bitcoin yield year-to-date is at 17.8%.
MicroStrategy’s move has sparked reactions across the crypto world. Influencer BitcoinMiningStockGuy is optimistic, noting that $21 billion equals the market cap of all public Bitcoin miners combined. Quant researcher Ryan McGinnis called the strategy “escape velocity” for surpassing other companies and possibly even nations in Bitcoin holdings.
In September, MicroStrategy raised $1.01 billion through a private offering of convertible senior notes, aiming to use part of the funds for Bitcoin acquisition.
See Related: MicroStrategy’s Bitcoin Holdings Soar To $14.6B After Massive $1.11 Billion Purchase
Microsoft Vs MicroStrategy
Since 1999, MicroStrategy’s stock has gained over 1,500%, outpacing Microsoft’s 1,460% increase during the same period.
Microsoft shareholders are set to vote in December on a proposal to explore Bitcoin as a balance sheet asset. The National Center for Public Policy Research pushed the initiative, highlighting Bitcoin’s potential as a hedge against inflation and noting MicroStrategy’s success with Bitcoin investments.
However, Microsoft’s board recommends voting against the plan, stating they already evaluate multiple assets, including Bitcoin. This decision follows previous investments in AI and tech over digital currencies.