MicroStrategy Announces $42 Billion Bitcoin Acquisition Plan

MicroStrategy co-founder Michael Saylor, once a Bitcoin skeptic, made a sharp pivot in 2020, embracing BTC as the ultimate asset and inflation hedge.

MicroStrategy co-founder Michael Saylor, once known for his skepticism towards Bitcoin, made a significant pivot in 2020. Since then, he has become one of BTC's most vocal advocates, touting it as the world's most valuable financial asset and the ultimate inflation hedge.

As part of its Bitcoin treasury strategy, MicroStrategy has built an impressive war chest of 252,220 BTC, currently valued at around $17.5 billion. Notably, the company is showing no signs of slowing down its BTC acquisitions, announcing a fresh $42 billion plan. However, gold enthusiast Peter Schiff isn't exactly thrilled by this move and took a jab at the plan.

“Egg Man” Saylor

Following MicroStrategy's unveiling of its new $42 billion plan to buy more Bitcoin, Schiff quickly weighed in, using a playful parable to throw shade on Saylor's BTC obsession. Schiff's tale centers on the overconfident “egg man” who couldn't resist betting big on egg futures.

In Schiff's story, a client is convinced that egg prices are going to the moon, so he calls up his broker to buy egg futures. With each price jump, his confidence grows, and he keeps doubling down, snapping up more and more contracts.

Sitting on millions of egg futures, he finally decides to sell and cash in big. However, when he asked his broker to cash out, the broker responded, “Sell to whom? You’re the Egg Man!”

Despite Schiff's cautionary tale, Saylor remains unfazed in his pursuit of amassing as much Bitcoin as possible and holding it for the long term. Selling for fiat is not a part of his plan, and he urges all Bitcoiners to embrace the same mindset.

“You do not sell your #Bitcoin. The Great Bitcoin Buy-Up In its quest to acquire even more Bitcoin, MicroStrategy has revealed an ambitious new strategy called the “21/21 Plan.” The goal is to raise a whopping $42 billion in capital over the next three years to fuel more BTC buys.

This would involve raising $21 billion by selling shares in the secondary market at the current price, while the other half will come from issuing new fixed-income securities.

For those wondering, fixed-income securities mean MicroStrategy will sell company bonds to investors, who’ll receive a fixed interest return and their original investment back upon maturity.

While all investments come with their fair share of risks, it's clear that MicroStrategy is all in on Bitcoin, placing a massive bet that the “number(s) go up” (NGU) forever.