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MicroStrategy, the world’s largest institutional bitcoin investor, announced its third-quarter financial results and announced plans to raise $42 billion over the next three years in line with its bitcoin strategy. Dubbed the “21/21 Plan,” the strategy aims to raise $21 billion from stocks and the other $21 billion from fixed-income securities. The company plans to use these funds to support its treasury reserve strategy by purchasing additional bitcoin.
MicroStrategy currently holds approximately 252,220 bitcoins, bringing the market value of these assets to $16 billion. The BTC Yield Rate since the beginning of 2023 has been reported as 17.8%, a metric the company uses to evaluate the performance of its bitcoin strategy. In the third quarter, MicroStrategy raised $2.1 billion in capital, increasing its bitcoin holdings by 11% and reducing its annual interest expense by $24 million.
The company reported revenue of $116.1 million, but this was about 5% below market expectations of $122.66 million. The 10.3% annual decline in revenue was attributed primarily to lower product license and support revenues. Third-quarter operating expenses rose to $514.3 million due to a $412.1 million write-down on digital assets, while operating losses totaled $432.6 million. Net losses were reported as $340.2 million.
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MicroStrategy, which has set its bitcoin return expectations between 6% and 10% for the coming years, has set a more cautious target due to market volatility. It aims to raise an additional $21 billion through a new at-the-market stock offering program, which will be used to purchase bitcoin and increase shareholder value. “The third quarter was a turning point for us. We are focused on increasing shareholder value with digital assets,” said Phong Le, the company’s president and CEO.
MSTR shares fell more than 8% in after-hours trading after falling 4% in regular trading. Yet the stock is up more than 250% since the beginning of the year.
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