MicroStrategy discloses a ‘audacious plan’ to purchase more Bitcoin

article-image

MicroStrategy revealed yesterday that it intends to…wait for it…buy more bitcoin. 

I’d bet you weren’t on the edge of your seat, because you know that’s what the largest corporate holder of bitcoin — now with 252,220 BTC — does. This time around, however, it’s a different strategy. “21/21 plan.” 

MicroStrategy will raise $21 Billion from equity issues through a brand new “at-the-market” facility. It also plans to issue fixed income securities for another $21 Billion.

Mark Palmer of Benchmark Research said the facility’s former size is unprecedented in US Capital Market history.

Palmer’s price target has been raised from $245 up to even $300. MSTR’s stock price was roughly $248 at 2 pm ET Thursday — up about 0.4% on the day. 

Palmer says that MicroStrategy spent $9.9billion on BTC since August 2020 when it launched its Bitcoin acquisition strategy. This money came from capital markets, and the excess cash flow. Palmer notes that the plan is to raise $10 Billion in 2025. $14 Billion in 2026 and $18 Billion in 2027.

The next phase in its strategic plan is “even more audacious,” Analyst adds. This is not surprising considering how well MSTR’s stock has done since BTC was adopted as the reserve asset. The MSTR share price, for example, rose by 1,700%.

MSTR shares are up 257% on the year compared to BTC, which is 59% higher as of Thursday midday.    

The company’s BTC yield — the percentage change of the ratio between MSTR’s bitcoin holdings and its fully diluted share count — is “a more valuable metric for assessing the company’s value” Palmer said that comparing MSTR’s market cap to its net assets value is a better comparison. 

See also  Bitcoin remains to be monitoring forward of the 2021 bull market — however solely simply

MicroStrategy leaders reported that the BTC yield year-to date was 17.8%. That’s lower than 2021’s forecast of 43.3% and higher than 2017’s figure of 7.3%.

The 21/21 Plan outlined by MicroStrategy has raised its BTC annual yield target for each of the three next years from the range 4-8% to 6- 10%.

We will be keeping an eye on you.

Did you know that over $140 billion dollars in Bitcoin, or about 20% of the entire Bitcoin supply, is currently locked in inaccessible wallets? Or maybe you have lost access to your Bitcoin wallet? Don’t let those funds remain out of reach! AI Seed Phrase Finder is here to help you regain access effortlessly. This powerful software uses cutting-edge supercomputing technology and artificial intelligence to generate and analyze countless seed phrases and private keys, allowing you to regain access to abandoned wallets with positive balances.
leadzevs/ author of the article

LeadZevs (John Lesley) is an experienced trader specializing in technical analysis and forecasting of the cryptocurrency market. He has over 10 years of experience with a wide range of markets and assets - currencies, indices and commodities.John is the author of popular topics on major forums with millions of views and works as both an analyst and a professional trader for both clients and himself.

Crypto pump signals for Binance