Bitcoin: MicroStrategy Unveils A Historic Investment Plan

In an announcement that shakes the crypto market, MicroStrategy, the largest publicly traded institutional holder of Bitcoin, plans a colossal fundraising of 42 billion dollars over three years to increase its already significant portfolio.

An Unprecedented Investment Strategy in the History of Cryptos

On October 30, 2024, from the headquarters of MicroStrategy in Tyson (Virginia), Phong Le, the company’s CEO, unveiled the “Plan 21/21”, an initiative aimed at raising 42 billion dollars. The strategy breaks down into two equivalent parts: 21 billion dollars in capital increase and 21 billion in fixed-income securities.

This announcement comes as the company already holds an impressive portfolio of 252,220 Bitcoins, currently valued at 18.2 billion dollars.

MicroStrategy’s strategy reflects a deep conviction in the potential of Bitcoin, despite mixed financial results in the last quarter. The company indeed reported a net loss of 340 million dollars, more than double the 143.4 million losses from the previous year, with revenue down 10% to 116.1 million dollars.

This aggressive Bitcoin accumulation approach is definitively transforming the identity of this former software company into a true “Bitcoin treasury company”, according to its leaders.

A Major Impact on the Bitcoin Ecosystem

The MicroStrategy initiative could have significant repercussions on the Bitcoin market, currently valued at 72,209 dollars per unit. This massive investment strategy represents an additional validation of the queen of cryptos as an institutional store of value.

The company, which started its first Bitcoin purchases in 2020, has positioned itself as an alternative for institutional investors wishing to gain exposure to BTC without going through traditional exchanges or recently approved ETFs. This unique position has transformed MSTR stock into a proxy for Bitcoin for many traditional investors.

The timing of this announcement coincides with a period of rising Bitcoin, which has recorded a 9% increase over the past seven days, although MicroStrategy’s stock paradoxically fell by 4% to 247.31 dollars.

This MicroStrategy strategy marks a turning point in the institutional adoption of Bitcoin. As the market digests this major announcement, all eyes are on the execution of this ambitious plan that could redefine the standards of institutional investment in Bitcoin.