MicroStrategy has announced its plans to raise more capital to purchase more Bitcoin over the next three years and boost its Bitcoin strategy. This comes as the company’s co-founder Michael Saylor agreed with Donald Trump’s statement that Bitcoin is money and shouldn’t be subject to capital gains tax.
MicroStrategy To Raise $42 Billion To Buy More Bitcoin
The software company announced in a press release its strategic goal of raising $42 billion of capital over the next three years to buy more Bitcoin. These funds will comprise $21 billion of equity and $21 billion of fixed-income securities.
MicroStrategy referred to itself as a ‘Bitcoin Treasury Company’ while revealing that some of this capital will be used to buy more BTC as a treasury reserve asset, allowing it to achieve a higher Bitcoin yield.
This plan is undoubtedly a huge boost for the Bitcoin price, considering the amount of buying pressure the flagship crypto could enjoy from the software company’s BTC purchases. It is worth mentioning that the company already holds 252,220 BTC ($6.851 billion), which it purchased at an average cost of $39,266 per bitcoin.
The company’s BTC holdings amount to 1.2% of Bitcoin’s total supply, and it is the fifth-largest holder behind Satoshi Nakamoto, Binance, Blackrock, and Grayscale. MicroStrategy has evidently benefitted from its Bitcoin strategy as the MSTR stock has been one of the best-performing assets, outperforming all major stocks and even the flagship crypto since it started buying BTC in August 2020.
Boluwatife Adeyemi
Boluwatife Adeyemi is a well-experienced crypto news writer and editor who has covered topics that cut across DeFi, NFTs, smart contracts, and blockchain interoperability, among others. Boluwatife has a knack for simplifying the most technical concepts and making it easy for crypto newbies to understand. Away from writing, He is an avid basketball lover and a part-time degen.
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