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Business intelligence firm MicroStrategy has announced plans to raise $42 billion through various financial instruments and expand its Bitcoin holdings extensively.
MicroStrategy released its quarterly attestation on Wednesday, followed by another Bitcoin bombshell. Per the report, the business intelligence firm intends to raise $42 billion to buy more Bitcoin.
Having already established itself as the public company with the largest Bitcoin stash, MicroStrategy’s longing to expand its portfolio of the premier asset remains unquenchable. It noted that it intends to raise $42 billion over three years to extend its holdings.
Notably, the American publicly listed firm stated that, as part of its “21/21” plan, it would realize the targeted capital with 50% from equity sales and 50% from fixed-income securities. This translates to $21 million from each of the financial instruments.
MicroStrategy Aggressively Pursuing Targeted Endgame
MicroStrategy co-founder and chairman, Michael Saylor, earlier revealed that MicroStrategy aims to become a Bitcoin bank in the future. According to his revelation, the firm will operate inversely compared to typical traditional banks, giving itself to borrowing fiat to acquire Bitcoin rather than lending its stash of the premier asset.
This theory implies that MicroStrategy would continue aggressively buying Bitcoin, leveraging investments from interested parties. In return, the firm would offer its equity or an agreed-upon yearly remuneration.
Notably, the three-year $42 billion capital fundraiser aligns with Saylor’s disclosure. MicroStrategy has gone on with the ploy since this year, having raised $4.25 billion through stock sales and debt. The firm uncovered $2.1 billion in Q3 alone through this means.
BTC Yield Up 17.8% Year-to-date
The Q3 attestation further disclosed that MicroStrategy’s BTC yield is up 17.8% year-to-date, adding 5.6% from Q2’s 12.2%. The uptick came following the expansion of the firm’s Bitcoin stash by 11% in the last quarter.
For context, MicroStrategy acquired 25,889 BTC in Q3, bringing its total holdings to 252,220 BTC. At the current market price, the stash is worth $18.23 billion, with an unrealized profit of $8.27 billion.
Other financial disclosures show that MicroStrategy slashed its total annualized interest expense by $24 million. The firm also reported quarterly revenue of $116.1 million, a 10.3% decrease year over year.
Meanwhile, MicroStrategy’s stock (MSTR) has surged considerably in the past few days, hitting a 25-year high of $266 on Tuesday. On a year-to-date basis, MSTR is up 260%, outperforming major traditional stocks and bonds. Notably, the stock is down 4.23% pre-market, trading at $247.31.