MicroStrategy Plans to Raise $42B to Buy Bitcoin (BTC) by 2027

Michael Saylor's software giant, MicroStrategy, plans to finance its continued Bitcoin acquisition strategy through new stock sales and capital raises.

MicroStrategy plans to raise $42 billion for further Bitcoin acquisitions over the next five years.

According to a statement by Phong Le, the chief financial officer of MicroStrategy, the software company intends to buy Bitcoin (BTC) to the tune of $42 billion by 2027. Le made this disclosure during the company's Oct. 31 earnings call. The company also stated that it intends to issue additional securities to bolster the cash flow from its software operations and "scale up our Bitcoin capital markets initiatives."

This plan is being referred to as "21/21" by Le, as MicroStrategy aims to raise $21 billion from debt and $21 billion from equity offerings.

The rising prices of BTC have benefited both MicroStrategy and its MSTR stock, enabling the software company to allocate more funds toward purchasing additional Bitcoin. MicroStrategy is notably the largest corporate Bitcoin holder, with over $18 billion in Bitcoin on its balance sheet.

Thank You, Satoshi. pic.twitter.com/LGH575CXVT

During the earnings call, Saylor outlined an expanded plan for buying, which includes promoting Bitcoin as a treasury reserve asset:

“We're going to promote global adoption of BTC as a treasury reserve asset. Promote it to countries, cities, states, and companies, both public and private.”

- Michael Saylor, MicroStrategy founder

In his crypto treasury thesis, the BTC evangelist is not alone. Presidential candidate Donald Trump has also stated that he would convert America's $12 billion BTC stash into a national strategic reserve.

As Bitcoin surged to all-time highs, MicroStrategy and Saylor's Bitcoin holdings both increased in value. This week, BTC crossed $73,000 before a 4% market correction tempered the gains, with the token trading at around $70,000 at the time of writing.

Some have questioned Saylor's long-term plans for these holdings, given his maximalist Bitcoin stance and continuous buying program. Saylor has stated that he will never sell and intends to return his BTC holdings to civilization upon his passing.