MicroStrategy’s Bold $42B Bitcoin Push: Inside the ‘21/21 Plan

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MicroStrategy, the largest corporate holder of Bitcoin, has announced an ambitious plan to raise $42 billion over the next three years to boost its Bitcoin reserves. The plan dubbed the “21/21 Plan,” was outlined during the company’s Q3 2024 earnings call, to raise $21 billion through equity and another $21 billion through fixed-income securities.

This funding is aimed at accelerating Bitcoin acquisition as a Treasury reserve asset, with CEO Phong Le emphasizing the move as part of a broader strategy to enhance shareholder value.

In the third quarter alone, MicroStrategy successfully raised $2.1 billion and increased its Bitcoin holdings by 11%, achieving a year-to-date yield of 17.8% on BTC. The company’s focus on Bitcoin has outpaced growth in its core software business, which showed mixed results: while subscription revenue increased by 32.5%, total revenue dropped by 10.3% year-over-year to $116.1 million.

Despite these challenges, the company’s aggressive Bitcoin strategy has paid off with substantial gains. According to Saylortracker, MicroStrategy’s 252,220 BTC holdings are currently valued at $18.27 billion, reflecting an unrealized profit of $8.3 billion or 83.5%.

Bitcoin has broken above $72,000 for the first time since its all-time high, driven by the recent ‘Uptober’ rally that’s finally gaining traction. Interest in spot Bitcoin ETFs is skyrocketing, with $893 million flowing into these funds—marking the second-largest inflow since January and underscoring renewed investor appetite.

With November, historically a bullish month for Bitcoin, now underway, the market is abuzz with anticipation. Many wonder if these factors could propel Bitcoin into a powerful rally, setting new milestones as we head toward the end of the year.

With Bitcoin’s recent price surge to $72,300, the timing of MicroStrategy’s latest move further cements its position as a pioneer in institutional Bitcoin adoption.