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Bitcoin-bull firm MicroStrategy has announced its new plan to further increase its Bitcoin (BTC) balance.
MicroStrategy, a business intelligence firm led by Michael Saylor, has become one of the most prominent institutional supporters of Bitcoin. Since 2020, the company has consistently increased its Bitcoin holdings as a hedge against inflation, viewing BTC as a more reliable store of value than traditional assets. With over 252,220 BTC on its balance sheet, MicroStrategy’s strategy is rooted in a long-term belief in Bitcoin’s growth potential. This aggressive accumulation has made the company a well-known advocate in the crypto space, encouraging other corporations to consider Bitcoin as a strategic reserve asset.
On October 31, 2024, the Nasdaq-listed public firm MicroStrategy announced a strategic goal to raise $42 billion in capital over the next three years, with plans to divide this evenly between $21 billion in equity and $21 billion in fixed-income securities. The company intends to use this additional capital to purchase more Bitcoin as a treasury reserve asset, aiming to do so in a way that would enable it to achieve a higher BTC investment returns.
MicroStrategy announces $42 billion capital plan including $21 billion ATM equity offering and a target of raising $21 billion in fixed-income securities. Join us at 5pm ET as we discuss our quarterly results and #Bitcoin Treasury Company plans. $MSTR https://t.co/eXYELbN1Dm
— Michael Saylor⚡️ (@saylor) October 30, 2024Through the earnings call report, MicroStrategy Chief Financial Officer Andrew Kang stated that through its treasury strategy, MicroStrategy increased Bitcoin holdings by 11% in the last quarter, raised the year-to-date BTC yield to 17.8%, and reduced total annualised interest expenses by $24 million.
MicroStrategy ($MSTR) Stock Price Action
The current trade price of $MSTR is $247, down 2.23% over the last 24-hour period.
Recently, MicroStrategy’s former CEO Michael Saylor endorsed former U.S. President Donald Trump, Bitcoin friendly US presidential candidate, as the U.S. presidential election date is approaching.
"They have them paying tax on crypto and I don't think that's right. #Bitcoin is money and you have to pay capital gains tax if you use it to buy a coffee? I was talking with a friend he said 'it really shouldn't be taxed' and I agree.” – @realDonaldTrump
— Michael Saylor⚡️ (@saylor) October 30, 2024Read also: The US President Thanks Nigerian President for Release of Binance Executive from Jail
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