MicroStrategy Unveils $21 Billion Bitcoin Acquisition Strategy
MicroStrategy announced its intention to buy more bitcoin, continuing its position as the largest corporate holder with 252,220 BTC. This new approach is termed the "21/21 plan."
The company aims to raise $21 billion through equity issuances and another $21 billion by issuing fixed income securities. This equity facility is noted as the largest in US capital markets history, according to Benchmark analyst Mark Palmer.
Palmer increased his price target for MicroStrategy's stock from $245 to $300, with the stock trading at approximately $248, reflecting a 0.4% increase on that day. Since initiating its bitcoin acquisition strategy in August 2020, MicroStrategy has spent $9.9 billion on BTC, with plans to raise $10 billion in 2025, $14 billion in 2026, and $18 billion in 2027.
This latest phase of the strategy is described as "even more audacious." MSTR’s stock has risen about 1,700% since adopting BTC as a reserve asset. Year-to-date, MSTR's share price has gained 257%, outpacing BTC's rise of 59% as of mid-day Thursday.
Palmer emphasized that MSTR’s BTC yield—reflecting the ratio of bitcoin holdings to fully diluted share count—is a better metric for assessing the company's value than comparing market capitalization to net asset value. The year-to-date BTC yield stands at 17.8%, lower than 2021's 43.3% but higher than last year's 7.3%. Following the "21/21 plan," executives raised the annual BTC yield target for the next three years from 4-8% to 6-10%.
Ongoing developments will be monitored closely.