2024-11-1 15:43 |
Michael Saylor’s Bitcoin development company MicroStrategy reported a loss in its latest quarterly results — but the firm is still uber-bullish on BTC.
The company, which holds more than 1% of the supply of Bitcoin on its balance sheet, has announced its intention to raise a whopping $42 billion in capital over the next three years in order to purchase more of the benchmark crypto as part of its treasury reserve strategy.
MicroStrategy’s Plan To Go Big On BitcoinOn Oct. 30, MicroStrategy unveiled its “21/21 Plan,” targeting $42 billion in capital, split evenly between $21 billion in equity and $21 billion in fixed-income securities.
https://twitter.com/saylor/status/1851718391889043954MicroStrategy CEO Phong Le said in a statement that the firm remains focused on increasing returns from holding Bitcoin.
“As a Bitcoin Treasury Company, we plan to use the additional capital to buy more Bitcoin as a treasury reserve asset in a manner that will allow us to achieve higher BTC Yield,” Phong opined.
MicroStrategy is already the largest publicly traded holder of Bitcoin, holding approximately 252,220 BTC, with a market value of $18.2 billion today. The firm reported a year-to-date BTC Yield of 17.8%. The number suggests that MicroStrategy has created 17.8% more value for shareholders by selling stock to buy Bitcoin. Looking ahead, it has plans to attain an annual BTC Yield of 6% to 10% between 2025 and 2027.
In the company’s earning statement Wednesday, MicroStrategy reported total revenues of $116.1 million — marking a 10.3% decline from last year, falling short of analyst estimates. The company also posted a net loss of $340 million, which is significantly higher compared to a loss of $143.4 million in Q3 of 2023.
Previously a quiet business intelligence firm, Tyson, Virginia-based MicroStrategy now securitizes BTC. Traditional investors who don’t wish to purchase Bitcoin through exchanges or the new spot exchange-traded funds use the firm’s stock as a proxy for the alpha crypto.
MicroStrategy first acquired Bitcoin in 2020 to maximize shareholders’ returns, but it hasn’t stopped purchasing the crypto since. In fact, Saylor recently offered to help Microsoft make its next trillion dollars by using his Bitcoin treasury reserve investment strategy, following word that shareholders in the Wall Street behemoth are set to consider a BTC investment proposal.
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