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Michael Saylor's MicroStrategy has announced an ambitious plan to raise $42 billion over the next three years to expand its bitcoin holdings.
The strategy, dubbed “21/21 Plan,” aims to secure $21 billion through equity and an additional $21 billion through debt, underscoring Saylor’s continued commitment to bitcoin as a corporate asset. clue.
“As a bitcoin treasury company, we plan to use the additional capital to purchase more bitcoins as a treasury reserve asset in a way that allows us to achieve higher btc yield,” said Chairman and CEO Phong Le, in the report. the company. third quarter income statement.
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twitter.com/hashtag/btc?src=hash&ref_src=twsrc%5Etfw”>#btc
MicroStrategy has announced an ambitious plan to raise $42 billion over the next three years, split equally between $21 billion in equities and $21 billion in fixed income securities. The company intends to use this capital to increase its bitcoin holdings as a treasury. pic.twitter.com/f2MEcnevoQ
— Fortune tells (@online0705) twitter.com/online0705/status/1851872718964068638?ref_src=twsrc%5Etfw”>October 31, 2024
MicroStrategy, the largest corporate holder of bitcoin, said in mid-September that it had purchased an additional 7,420 btc for $458.2 million, bringing its total holdings to 252,220 btc. Purchased at an average price of $39,266 per coin, these holdings are now worth more than $18.1 billion, with bitcoin trading at around $72,000.
MicroStrategy Stock Falls Amid Earnings Misses, bitcoin Premium Concerns
MicroStrategy shares fell about 5.9% after its third-quarter earnings fell short of expectations.
MicroStrategy reported that revenue fell 10.3% to $116.1 million in the third quarter, about 5.2% below analyst forecasts. Despite that, it said it earned a 5.1% return on its bitcoin (btc) holdings and posted an overall gross profit of $81.7 million, maintaining a gross margin of 70.4%, it said.
This update comes as MicroStrategy continues its shift toward “bitcoin development company” branding.
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Microstrategy twitter.com/search?q=%24MSTR&src=ctag&ref_src=twsrc%5Etfw”>$MSTR Falls 7.5% After Third Quarter Earnings and Revenue Missed.
“Today we announced a strategic goal to raise $42 billion of capital over the next 3 years, comprised of $21 billion of equities and $21 billion of fixed income securities, which we refer to as our “ 21/21… pic.twitter.com/EvQxN91O1M
– TipRanks (@TipRanks) twitter.com/TipRanks/status/1851724391811363271?ref_src=twsrc%5Etfw”>October 30, 2024
Still, crypto-moves/how-long-can-microstrategys-premium-to-bitcoin-last/”>Steno research recently warned that MicroStrategy's current 300% premium on its bitcoin holdings may not be sustainable with the launch of spot bitcoin ETFs and options trading in new investment vehicles, which offer investors simpler and economics of accessing bitcoin.
Analyst Mads Eberhardt predicts the premium could fall below 200%, similar to where it was in previous bull markets.
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