HomeBitcoinBreaking: MicroStrategy Announces Plan To Raise $42B To Buy More Bitcoin

Breaking: MicroStrategy Announces Plan To Raise $42B To Buy More Bitcoin

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MicroStrategy has announced its plans to raise capital to purchase more Bitcoin over the next three years and boost its Bitcoin strategy. Interestingly, the company also revealed its new status as a Bitcoin Treasury Company.

MicroStrategy To Raise $42 Billion To Buy More Bitcoin

The software company announced in a press release its strategic goal of raising $42 billion of capital over the next three years to buy more Bitcoin. These funds will comprise $21 billion of equity and $21 billion of fixed-income securities.

MicroStrategy referred to itself as a ‘Bitcoin Treasury Company’ while revealing that some of this capital will be used to buy more BTC as a treasury reserve asset, allowing it to achieve a higher Bitcoin yield.

This plan is undoubtedly a huge boost for the Bitcoin price, considering the amount of buying pressure the flagship crypto could enjoy from the software company’s BTC purchases. It is worth mentioning that the company already holds 252,220 BTC ($6.851 billion), which it purchased at an average cost of $39,266 per bitcoin.

The company’s BTC holdings amount to 1.2% of Bitcoin’s total supply, making it the fifth-largest holder behind Satoshi Nakamoto, Binance, Blackrock, and Grayscale. MicroStrategy has evidently benefitted from its Bitcoin strategy, as the MSTR stock has been one of the best-performing assets, outperforming all major stocks and even the flagship crypto since it started buying BTC in August 2020.

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Boluwatife Adeyemi

Boluwatife Adeyemi is a well-experienced crypto news writer and editor who has covered topics that cut across DeFi, NFTs, smart contracts, and blockchain interoperability, among others. Boluwatife has a knack for simplifying the most technical concepts and making it easy for crypto newbies to understand. Away from writing, He is an avid basketball lover and a part-time degen.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.





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