The company, led by Michael Saylor , wants to invest a lot of this money in Bitcoin, the popular digital currency.
Over the next three years, only 492,750 new Bitcoin will be available to buy as part of the Bitcoin investment plan. It makes it a limited resource.
Breaking Down the $42 Billion
MicroStrategy’s big plan has two parts: the first is an “ATM equity offering” worth $21 billion, and the second is another $21 billion in what’s called “fixed-income securities.” Let’s break that down: the ATM equity offering is when a company raises money by selling new shares to investors. It’s like a way for the company to ask the public for some funds.
On the other hand, fixed-income securities are loans that the company will pay back with interest. So, MicroStrategy will be getting money from two sources—new stock sales and loans—to reach that big $42 billion goal.
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, 2024
This plan shows that MicroStrategy is going “all in,” or fully committed, to expanding its Bitcoin holdings and investments.
The Goal: Raise, Buy, and Hold
MicroStrategy already owns a big stash of Bitcoin and believes that as more people want it, the price will go up over time. With only 492,750 new Bitcoin expected to come out over the next three years, the supply is shrinking, and MicroStrategy wants to get a big piece of the pie before it’s gone.
Highlights From Todays MicroStrategy Earnings Call With Saylor. The $42 Billion Plan To Acquire and Hold #Bitcoin
Forever. pic.twitter.com/4bBUIFmYjk
— BITC0INALLCAPS (@BITCOINALLCAPS) October 30, 2024
With $42 billion in mind, MicroStrategy hopes to gather more Bitcoin and add to its assets. The company’s actions also suggest that they believe Bitcoin will play a major role in the future of money. By collecting more of it, they’re setting themselves up to benefit if Bitcoin’s value goes up. In their eyes, it’s a “win-win” situation.
Disclaimer
The information discussed by Altcoin Buzz is not financial advice. This is for educational, entertainment, and informational purposes only. Any information or strategies are thoughts and opinions relevant to the accepted risk tolerance levels of the writer/reviewers and their risk tolerance may be different than yours. We are not responsible for any losses that you may incur as a result of any investments directly or indirectly related to the information provided. Bitcoin and other cryptocurrencies are high-risk investments so please do your due diligence. Copyright Altcoin Buzz Pte Ltd.
