MicroStrategy to Buy $42 Billion in Bitcoin Between 2025 and 2027

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In its Q3 2024 earnings report, MicroStrategy unveiled a bold $42 billion capital-raising initiative aimed at acquiring Bitcoin (BTC) over the next three years. This ambitious plan—dubbed the “21/21 Plan”—positions the company as a pioneering force in corporate adoption of digital assets, reinforcing Bitcoin’s role not just as an investment, but as a foundational element of modern treasury management.

The 21/21 Plan: A Strategic Shift Toward Digital Capital

During the Q3 earnings call, Executive Chairman Michael Saylor and CEO Phong Le detailed MicroStrategy’s long-term vision: to raise $21 billion in equity** and **$21 billion in fixed-income securities by 2027. All proceeds will be strategically allocated toward Bitcoin purchases, cementing the cryptocurrency as the core of the company’s financial strategy.

“Today, we are announcing a strategic goal of raising $42 billion of capital over the next 3 years… which we refer to as our ‘21/21 Plan,’” the company stated in its official release.

This marks one of the most aggressive capital deployment strategies in corporate history—particularly for a publicly traded firm. The announcement coincided with a record-setting $21 billion at-the-market (ATM) equity offering, the largest such issuance ever recorded. By leveraging traditional financial instruments to fund digital asset accumulation, MicroStrategy is redefining how companies can use capital markets to build long-term value.

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Why Bitcoin? The Case for Digital Treasury Reserves

MicroStrategy already holds 252,220 BTC, valued at over $18 billion**, following a Q3 acquisition of 25,889 bitcoins at an average price of **$60,839 each. Despite a 10.34% year-over-year decline in revenue—down to $116.07 million—the company remains undeterred in its mission.

Saylor emphasized that Bitcoin is “digital capital”—a durable, scarce, and globally accessible store of value. Unlike traditional treasury assets like bonds or cash, which erode under inflation, Bitcoin offers a deflationary alternative with increasing network security and adoption.

“Bitcoin is the best use of proceeds, maybe in the history of the capital markets… We are going to buy and hold Bitcoin indefinitely, exclusively, securely. If you’re waiting for us to hedge, to sell it, to get out on top, if you’re looking for us to diversify, go elsewhere,” Saylor declared.

This uncompromising stance underscores MicroStrategy’s belief that Bitcoin will outperform legacy financial systems over decades, not just years. The company sees itself not as a tech firm with a side crypto bet, but as the world’s first Bitcoin treasury company, setting a precedent for others to follow.

Building a Bitcoin-Centric Financial Ecosystem

Beyond mere accumulation, MicroStrategy is laying the groundwork for a new class of Bitcoin-backed financial products. The company has set a target of generating a 6–10% annual Bitcoin yield, calculated as the ratio of BTC holdings to diluted shares. This metric could become a benchmark for evaluating corporate digital asset performance.

While the exact mechanisms for generating yield remain under development, possibilities include:

Such innovations could catalyze broader institutional participation, allowing pension funds, endowments, and other conservative investors to gain exposure to Bitcoin through familiar financial vehicles.

Market Impact and Industry Parallels

MicroStrategy’s strategy is gaining traction amid growing institutional interest in digital assets. Robinhood, for example, reported strong Q3 results with $637 million in revenue**, a 36% increase year-over-year. Its assets under custody hit a record **$152 billion, fueled by over $10 billion in net deposits for three consecutive quarters.

Robinhood’s expansion into prediction markets—particularly around the 2024 U.S. election cycle—reflects a broader shift toward decentralized finance and user-driven economic models. While different in execution, both companies share a vision: leveraging blockchain technology to democratize access to financial tools.

However, MicroStrategy stands apart by focusing exclusively on Bitcoin as corporate treasury reserves, avoiding diversification into altcoins or speculative ventures. This singular focus enhances credibility among risk-averse investors seeking clarity in a volatile market.

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Frequently Asked Questions (FAQ)

Q: What is MicroStrategy’s 21/21 Plan?
A: It’s a three-year strategy to raise $42 billion—$21 billion in equity and $21 billion in fixed-income securities—to purchase Bitcoin. The goal is to strengthen its position as a Bitcoin-first corporation.

Q: How much Bitcoin does MicroStrategy currently own?
A: As of Q3 2024, MicroStrategy holds 252,220 BTC, acquired at an average price of approximately $34,000 per coin.

Q: Is MicroStrategy still profitable from its software business?
A: While software revenue declined slightly to $116 million in Q3, the company views Bitcoin appreciation as the primary driver of shareholder value moving forward.

Q: Could MicroStrategy’s model be replicated by other companies?
A: Yes. Firms with strong balance sheets and long-term horizons may adopt similar strategies, especially if Bitcoin continues gaining recognition as a legitimate reserve asset.

Q: What risks does this strategy face?
A: Regulatory uncertainty, market volatility, and potential dilution from equity raises are key risks. However, MicroStrategy believes the long-term upside outweighs these challenges.

Q: Will MicroStrategy ever sell its Bitcoin?
A: According to Michael Saylor, the company intends to hold Bitcoin indefinitely and has no plans to hedge or diversify away from it.

The Road Ahead: Redefining Corporate Finance

MicroStrategy’s transformation from a niche enterprise software provider to the largest public company holder of Bitcoin illustrates a seismic shift in how value is stored and grown. By treating Bitcoin as digital gold—a non-sovereign, censorship-resistant asset—the company challenges conventional wisdom about risk, liquidity, and capital preservation.

As more institutions explore digital asset allocation, MicroStrategy’s playbook may serve as a blueprint. Its integration of traditional finance tools (like ATM offerings and bond-like instruments) with a purely digital reserve asset demonstrates that innovation doesn’t require abandoning financial rigor—it requires reimagining it.

With Bitcoin halving events, increasing institutional adoption, and macroeconomic uncertainty persisting into 2025 and beyond, MicroStrategy’s bet could prove transformative—not just for its shareholders, but for global finance itself.

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