MicroStrategy wants to buy more BTC

Among today’s Bitcoin news, the revelation of MicroStrategy’s “21/21 plan” cannot be missed, which aims to raise 42 billion dollars to buy more BTC. Over the next three years, the company is preparing to raise 21 billion dollars in equity and 21 billion dollars in fixed-income securities. 

Bitcoin News and MicroStrategy’s “21/21 plan”: 42 billion dollars to buy more BTC

The company founded by Michael Saylor, MicroStrategy, has announced its intention to implement a new plan, nicknamed the “21/21 plan” to buy new Bitcoin.

In practice, the company aims to raise 42 billion dollars over the next three years, through an offering of 21 billion dollars in stocks and 21 billion dollars in fixed income securities. 

Here is Michael Saylor’s comment on X:

https://twitter.com/saylor/status/1851718391889043954

“MicroStrategy announces a capital plan of 42 billion dollars, which includes an ATM stock offering of 21 billion dollars and the goal of raising 21 billion dollars in fixed income securities. Join us at 5:00 PM ET to discuss our quarterly results and the company’s #Bitcoin treasury plans. $MSTR”

Also Phong Le, President and CEO of MicroStrategy, released his comment:

“Our goal remains to increase the value generated for our shareholders by leveraging the digital transformation of capital. Today we announce the strategic goal of raising 42 billion dollars of capital over the next 3 years, consisting of 21 billion dollars in equity and 21 billion dollars in fixed income securities, which we define as our “21/21 Plan”. As a Bitcoin treasury company, we intend to use the additional capital to purchase more bitcoin as a treasury reserve asset, in order to achieve a higher return in BTC”

Bitcoin News: purchases and performance of MicroStrategy

Last September, MicroStrategy had announced a fundraising to purchase more Bitcoin (BTC).

The idea of the company was to offer the market new senior convertible bonds maturing in 2028, for a total amount of 700 million dollars. The offer is private and aimed at qualified institutional buyers. 

This continuous exposure to Bitcoin has led MicroStrategy to record better performance than any other company listed in the S&P500 index, from 2020 to today. In practice, it has been analyzed that in the last 4 years, the MSTR stock has grown much more compared to the major US stocks. 

In the meantime, as of today, MSTR is worth $247, up by +46% compared to a month ago and by 260% compared to the beginning of 2024. 

The price of Bitcoin (BTC) also seems to be bullish, reaching to touch its ATH – All-Time High above $73,000 on October 29. 

At the time of writing, BTC is worth $72,245 and is in a pump of +7% compared to a week ago and 13% compared to last month. 

The diatribe between Vitalik Buterin and Michael Saylor

In this month of October, Vitalik Buterin, co-founder of Ethereum, has expressed harsh criticism towards Michael Saylor.

Everything began when Saylor had suggested to Bitcoin users to rely on big banks to safeguard their funds. This statement made Buterin raise his head and voice, deciding to respond with heated tones. 

The words of Buterin were “I will happily say that I think Saylor’s comments are crazy”. 

Obviously, Buterin’s statements express a total disapproval of entrusting one’s BTC to large banks or centralized institutions. For Buterin, as for many in the crypto-community, self-custody of one’s crypto is the heart of the philosophy of decentralization, individual autonomy, and the real possibility for users to have full control of their assets.

On the contrary, Saylor argues that self-custody is complex and poses a risk for most users, especially for those less experienced. Their solution, according to Saylor, is to rely on third parties such as banks to feel more secure.