MicroStrategy Plans to Raise $42 Billion to Buy Bitcoin with "21/21 Plan"

Sentiment Status: Positive

Just weeks after sharing his future vision, Michael Saylor is positioning MicroStrategy to become a true Bitcoin-based bank.

Michael Saylor's MicroStrategy is gearing up to secure $42 billion over the next three years to accumulate more Bitcoin, the company revealed.

The plan, known as the “21/21 Plan,” will involve $21 billion in equity and another $21 billion in fixed-income securities over the coming three years, according to a MicroStrategy announcement on October 30. At the time of publication, $42 billion in Bitcoin equals approximately 578,586 BTC, representing about 2.7% of Bitcoin's total supply.

MicroStrategy’s President and CEO, Phong Le, highlighted the company’s goal of boosting returns by holding Bitcoin. 

“As a Bitcoin treasury company, we plan to leverage additional capital to purchase more Bitcoin as a treasury reserve asset in a way that enables us to achieve greater BTC returns,” said Phong. MicroStrategy reported a year-to-date BTC return of “17.8%” and is aiming for an annual BTC yield of 6% to 10% between 2025 and 2027.

Crypto commentator BitcoinMiningStockGuy expressed enthusiasm for the news, noting that $21 billion "is like the entire market cap of all public miners combined." Meanwhile, quantitative volatility researcher Ryan McGinnis commented on the plan, calling it “escape velocity.” 

“The only question is how big the gap will be between MSTR, every other public company on Earth, and even entire nations,” McGinnis remarked. This comes just months after McGinnis’s March 6 statement, in which he referred to MicroStrategy as a “Value Monopoly.”

Back in September, MicroStrategy completed a private placement of around $1.01 billion in senior convertible notes at a 0.625% interest rate, set to mature in 2028—with a portion of the proceeds earmarked for Bitcoin acquisitions. 

This exclusive offering, which closed on September 19, was targeted at institutional investors and allowed conversions either to cash or MicroStrategy shares.

In other recent highlights, reports noted that MicroStrategy has surged over 1,500% since 1999, outpacing even tech giant Microsoft, which saw a 1,460% gain over the same 25-year stretch.

Just weeks after sharing his future vision, Michael Saylor is positioning MicroStrategy to become a true Bitcoin-based bank. 

Following the recent quarterly report and unveiling of the 21/21 Plan, Saylor detailed his ambition in a note to Bernstein clients, explaining that he aims to steer the company toward “Bitcoin market instruments” such as convertible shares, fixed-income assets, and more, effectively creating a broad suite of investment options accessible to diverse investor profiles.

“This is the world’s most valuable asset,” Saylor remarked, outlining the ultimate goal: to lead as the premier Bitcoin-based financial institution, whether as a “Bitcoin bank, commercial bank, or even as a financial services company built around Bitcoin.”

To illustrate, Saylor shared that, ideally, MicroStrategy could amass $20 billion in convertibles, $20 billion in preferred shares, $10 billion in debt, plus $50 billion in structured financial instruments, accumulating between $100 billion and $150 billion in Bitcoin holdings.

MicroStrategy’s debt strategy, he added, is “infinitely scalable.” By leveraging substantial capital to secure an asset with exponential appreciation potential, Saylor’s approach stands on the belief that, in his words, “either you believe Bitcoin is something, or you believe it’s nothing.”

Presently, MicroStrategy holds a staggering 252,220 BTC in reserves, representing over 1.1% of Bitcoin’s total supply—currently valued at approximately $18.3 billion.