MicroStrategy's Bitcoin move: $42 billion plan

MicroStrategy announced that it aims to raise $42 billion to increase its Bitcoin (BTC) holdings.

MicroStrategy announced a new capital plan of $42 billion to expand its strategies for Bitcoin investments. The company aims to increase its Bitcoin holdings by providing half of its capital from stocks and the other half from fixed-income securities.

MicroStrategy has announced its third-quarter financial results, stating a 5.1% increase in Bitcoin returns during this period. The company reported a Year-to-Date Bitcoin Return Rate of 17.8%. This rate is used as a benchmark to evaluate the performance of Bitcoin investment strategies. Additionally, as of September 30th, MicroStrategy reportedly holds approximately 252,220 Bitcoins.

Bitcoin (BTC) purchase has been activated

As part of MicroStrategy's newly announced "21/21 Plan", it aims to raise $42 billion in capital over the next three years. This capital will consist of $21 billion in stocks and $21 billion in fixed-income securities. With this capital increase, the company aims to increase its Bitcoin reserves and support its asset management strategy.

MicroStrategy's Third Quarter Performance

In the third quarter, MicroStrategy raised $2.1 billion through capital and debt, increased its BTC holdings by 11%, and reduced its annual interest expenses by $24 million. However, the company's total revenue of $116.1 million was approximately $8 million below expectations.

Total operating expenses reached $514.3 million for the quarter. Of these expenses, $412.1 million were due to losses in digital assets and $432.6 million were due to operational losses. The quarter's net loss was $340.2 million, or $1.72 per share.

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