"MicroStrategy Aims to Raise $42 Billion for Bitcoin Purchases Over the Next Three Years"

In its third-quarter 2024 financial report, the tech firm MicroStrategy laid out an ambitious plan: to raise $42 billion over the next three years, dedicated entirely to purchasing Bitcoin. This strategic decision underscores the company's belief in Bitcoin as a viable long-term asset, continuing its commitment to digital transformation and innovative capital management.

MicroStrategy, a company with a notable history in Bitcoin investments, revealed that it intends to obtain funds through a mix of equity and fixed-income securities. According to CEO Phong Le, the company aims to split the capital evenly, with $21 billion targeted from equity and the remaining $21 billion from fixed-income securities.

"Our strategy remains focused on generating value for our shareholders through digital capital transformation," Le stated in the report. "This goal is to raise $42 billion over the next three years, with half of this amount derived from equity and the other half from fixed-income securities. This capital will be used to bolster our Bitcoin holdings, further strengthening our balance sheet with this digital asset."

MicroStrategy’s recent quarterly performance included significant capital acquisition. In Q3 2024 alone, the company raised $2.1 billion through equity and debt offerings. Additionally, it expanded its Bitcoin portfolio by 11% during the quarter, leading to a year-to-date annualized return on Bitcoin investments of 17.8%.

However, the company also made adjustments to its future expectations, revising its target return on Bitcoin investments for the period 2025–2027 to a range of 6%–10%, reflecting a more conservative outlook as it prepares for potential market volatility.

As of September 30, 2024, MicroStrategy held a total of 252,220 BTC on its balance sheet. While the company's operating expenses surged to $514.3 million during Q3—an increase of 301.6% compared to the previous quarter—these expenses primarily consisted of impairment losses on digital assets, which amounted to $412.1 million. This figure represents a significant jump from the $33.6 million in impairment losses reported for Q3 2023.

Earlier this year, the performance of MicroStrategy's stock attracted significant attention, with shares climbing 251% since the beginning of 2024. This remarkable growth highlights investor confidence in the company’s Bitcoin-focused strategy and the increasing acceptance of Bitcoin as a corporate reserve asset.

MicroStrategy's new funding plan will likely be a notable development to watch in both the tech and crypto spaces, as it reaffirms the company's dedication to building its Bitcoin reserves while navigating the dynamic financial landscape of the digital asset market.