MicroStrategy plans to raise $42 billion to buy BTC

In the financial results for the third quarter of MicroStrategy reported about a loss of $340.2 million and presented a plan to raise $42 billion to continue the strategy of buying bitcoins.

The business analytics software provider posted revenue of $116.1 million, about $8 million below consensus estimates and down 10.3% from the same period last year. The company explained this by a drop in revenue from product licenses and their support.

Operating expenses for the quarter reached $514.3 million, which was primarily driven by impairment losses on digital assets of $412.1 million.

During the quarter, MicroStrategy acquired 25,889 BTC at an average price of $60,839, spending ~$1.6 billion. As of September 30, MicroStrategy owned 252,220 BTC with a market value of $16 billion.

The current figure is about $18.3 billion. In total, since August 2020, the company has spent $6.9 billion on digital gold purchases.

In July-September, MicroStrategy raised $2.1 billion through an offering of common stock and convertible notes. The company repaid $500 million in secured notes, making its Bitcoin reserves 100% unencumbered. Annual interest expense decreased by $24 million.

The firm unveiled its “Plan 21/21,” which aims to raise $42 billion over the next three years. It is assumed that the funds received in equal shares in the form of equity capital and through the placement of debt securities will be used to further increase Bitcoin holdings.

According to Yahoo FinanceMicroStrategy’s capitalization is $50.1 billion. The company’s quotes over the past 12 months have increased by 508%, the price of Bitcoin by 111% (CoinGecko).

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