2024

Bitcoin

<ul>
 <li aria-level="1">MicroStrategy announces a plan to acquire $42 billion in Bitcoin over three years, aiming for major market impact.</li>
 <li aria-level="1">The “21/21 Plan” involves $21 billion each from equity and fixed-income securities to fund this expansive Bitcoin purchase.</li>
</ul>
MicroStrategy has disclosed a bold financial strategy, planning to acquire $42 billion worth of Bitcoin [BTC] over the next three years. This initiative aligns with the upcoming 2028 Bitcoin halving cycle, signaling a significant commitment to integrating cryptocurrency into its core business operations.&nbsp;
Michael Saylor, the head of <a href="https://www.ethnews.com/microstrategy-leads-over-amazon-and-alphabet-impact-on-stock-market-trends/" rel="noopener noreferrer nofollow">MicroStrategy</a>, has outlined a financing plan which includes both equity and fixed income securities totaling $21 billion each, under their <a href="https://www.microstrategy.com/press/microstrategy-announces-third-quarter-2024-financial-results-and-announces-42-billion-capital-plan_10-30-2024" rel="noopener noreferrer nofollow">“21/21 Plan.”</a>
Saylor’s assertion comes with an optimistic forecast for Bitcoin, predicting its value could surge between $3 million and $49 million within the next two decades.
<blockquote class="twitter-tweet" data-width="550" data-dnt="true">
 MicroStrategy announces $42 billion capital plan including $21 billion ATM equity offering and a target of raising $21 billion in fixed-income securities. Join us at 5pm ET as we discuss our quarterly results and <a href="https://twitter.com/hashtag/Bitcoin?src=hash&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">#Bitcoin</a> Treasury Company plans. <a href="https://twitter.com/search?q=%24MSTR&amp;src=ctag&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">$MSTR</a> <a href="https://t.co/eXYELbN1Dm" rel="noopener noreferrer nofollow">https://t.co/eXYELbN1Dm</a>
 — Michael Saylor<img src="https://s.w.org/images/core/emoji/15.0.3/72x72/26a1.png" alt="⚡" class="wp-smiley" style="height: 1em; max-height: 1em;"> (@saylor) <a href="https://twitter.com/saylor/status/1851718391889043954?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">October 30, 2024</a>
</blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
He is also vocal in his support of recent pro-crypto policies proposed by <a href="https://www.ethnews.com/donald-trumps-2024-campaign-focuses-on-u-s-dominance-in-bitcoin-mining/" rel="noopener noreferrer nofollow">Donald Trump</a>, particularly the elimination of capital gains tax on Bitcoin transactions, which could further incentivize investment in the cryptocurrency.
MicroStrategy’s <a href="https://www.ethnews.com/michael-saylors-bold-vision-microstrategys-bitcoin-strategy-and-the-path-to-a-trillion-dollar-company/" rel="noopener noreferrer nofollow">approach</a> involves a substantial at-the-market (ATM) stock issuance program, leading analysts to compare its operational model to that of a U.S. spot Bitcoin ETF. 
This method would allow MicroStrategy to continuously issue stock to fund further Bitcoin acquisitions, effectively tying the company’s stock performance directly to Bitcoin’s market dynamics. 
Analyst Quinn Thompson of Lekker Capital described this strategy as transforming MicroStrategy’s stock, MSTR, into a “de-facto ETF.”
The company’s aggressive acquisition strategy is not just about capitalizing on the expected future rise of Bitcoin but also aims to establish MicroStrategy as a foundational player in the Bitcoin banking sector. 
This was detailed further in a recent announcement about their intent to issue convertible notes, another mechanism to facilitate their extensive Bitcoin purchasing plans.
Despite reporting a $19.4 million loss in the third quarter of 2024, MicroStrategy’s stock has seen significant gains, largely attributed to its Bitcoin investment strategy initiated in 2020. 
Since then, MSTR has outperformed on the S&amp;P index, showcasing a remarkable 250% increase year-to-date, which is over four times the 60% gain of Bitcoin itself in the same period. 
The third quarter alone saw MicroStrategy stock rise by about 20%, while Bitcoin itself showed less than 1% growth.
As MicroStrategy prepares to release its earnings report, analysts like Jeff Park from Bitwise predict an additional 7% rally in MSTR stock based on options market data. This anticipated movement underscores the high stakes and high interest surrounding MicroStrategy’s intertwining with Bitcoin’s market performance. 
As of now, MSTR trades at $247, with the potential to hit new highs amidst the fluctuating crypto market conditions.
The post <a href="https://www.ethnews.com/analyzing-microstrategys-ambitious-plan-to-acquire-42b-in-bitcoin-ahead-of-the-2028-halving/" rel="noopener noreferrer nofollow">Analyzing MicroStrategy’s Ambitious Plan to Acquire $42B in Bitcoin Ahead of the 2028 Halving</a> appeared first on <a href="https://www.ethnews.com" rel="noopener noreferrer nofollow">ETHNews</a>.

Analyzing MicroStrategy’s Ambitious Plan to Acquire $42B in Bitcoin Ahead of the 2028 Halving

ETHNews

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