Key Points
- MicroStrategy’s CEO Phong Le announces plans to buy $42 billion worth of Bitcoin by 2027.
- The company’s founder, Michael Saylor, intends to promote Bitcoin as a global treasury reserve asset.
Software behemoth, MicroStrategy, led by Michael Saylor, has announced plans to fund its ongoing Bitcoin acquisition strategy through new stock sales and capital raises.
MicroStrategy’s Bitcoin Acquisition Strategy
The company’s CEO, Phong Le, disclosed during an earnings call on October 30 that MicroStrategy aims to purchase $42 billion worth of Bitcoin (BTC) by 2027. The company also intends to issue more securities to support cash flow from its software business and amplify its Bitcoin capital market initiatives.
The plan, dubbed “21/21”, involves raising $21 billion from debt and $21 billion from equity offerings.
MicroStrategy’s Bitcoin Holdings
The rising prices of BTC have strengthened MicroStrategy and its MSTR stock, enabling the software company to invest more funds into acquiring additional Bitcoin. Currently, MicroStrategy is the largest known corporate holder of Bitcoin, with over $18 billion in Bitcoin on its balance sheet.
During the earnings call, Saylor presented an expanded buying strategy, which includes advocating for Bitcoin as a treasury reserve asset. He said, “We’re going to promote global adoption of BTC as a treasury reserve asset. Promote it to countries, cities, states, and companies, both public and private.”
Donald Trump, a presidential candidate, also expressed his support for the crypto treasury thesis, stating that he would convert America’s $12 billion BTC collection into a national strategic reserve.
The value of MicroStrategy’s and Saylor’s Bitcoin holdings has grown as Bitcoin’s price has surged to record highs. This week, Bitcoin reached over $73,000 before a 4% market correction moderated gains, trading around $70,000 as of the time of this writing.
Saylor’s firm belief in Bitcoin has fueled a continuous buying program, leading some to question his long-term plans for these holdings. However, Saylor has stated that he has no intention of selling and plans to return his BTC holdings to civilization when he’s no longer here.
