MicroStrategy, a major player in business intelligence, is energetically working towards raising $21 billion through stock sales to finance its Bitcoin purchases. Within a month of announcing this plan, the company has already secured about half of this amount, according to Bloomberg. Recently, MicroStrategy sold 3.7 million shares, using the $1.5 billion earned to buy Bitcoin. The firm aims to raise another $21 billion through fixed-income securities by 2027 while its “21/21 Plan” outlines raising $42 billion over three years for expanding its Bitcoin holdings. Analysts are optimistic, granting MSTR stock a Strong Buy rating, with potential upside suggested based on current performance.
MicroStrategy, a company known for its business intelligence services, is making significant strides towards its goal of raising $21 billion through stock sales to enhance its Bitcoin holdings. In a recent report by Bloomberg, it was revealed that MicroStrategy has already secured about 50% of this target just a month after the announcement of their fundraising strategy.
In the past week, MicroStrategy sold an impressive 3.7 million shares, using the funds to purchase $1.5 billion worth of Bitcoin. This means that the company has successfully bought Bitcoin for four consecutive weeks now. Presently, they have approximately $11.3 billion left to raise under their share offering program, which allows them to sell additional shares to generate capital.
MicroStrategy is also planning to raise another $21 billion through fixed-income securities by 2027 to continue its Bitcoin acquisition journey. Recently, they disclosed that they purchased 15,400 Bitcoin at an average price of $95,976 per token from November 25 to December 1. To date, the company has spent over $13.5 billion on Bitcoin and currently holds $38 billion worth of the cryptocurrency.
Furthermore, MicroStrategy has introduced its “21/21 Plan,” aiming to raise a total of $42 billion over the next three years, with half coming from stock sales and the other half from debt financing. Analysts remain optimistic about MicroStrategy, giving it a Strong Buy rating, especially as the stock has increased by over 500% in the past year.
For those interested in MicroStrategy’s stock, the average price target is set at $494, indicating a potential upside of nearly 30% from its current level.
Tags: MicroStrategy, Bitcoin, MSTR stock, cryptocurrency, investment news, stock sales.
What is MicroStrategy’s Bitcoin funding plan?
MicroStrategy’s Bitcoin funding plan is a commitment to buy and hold $21 billion worth of Bitcoin to strengthen its investment strategy.
How much of the funding plan has MicroStrategy completed?
MicroStrategy has reached the halfway mark, meaning they have invested around $10.5 billion in Bitcoin so far.
Why is MicroStrategy investing in Bitcoin?
MicroStrategy believes that Bitcoin is a strong store of value and can help protect against inflation, making it a smart investment for the company’s future.
What does this mean for MicroStrategy’s stock?
Investing heavily in Bitcoin may affect MicroStrategy’s stock price, as investors often react to news about cryptocurrency investments.
Is this funding plan risky?
Yes, the funding plan carries risks because the price of Bitcoin can be very volatile, which might impact MicroStrategy’s financial stability.
