MicroStrategy Reveals $84 Billion Strategy for Purchasing More Bitcoin - Details Unveiled
Benjamin Njiri Saman Waris
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Strategic investment firm, Strategy (originally MicroStrategy), has ratcheted up its Bitcoin [BTC] capital allocation plan from the initial $42 billion to a whopping $84 billion, as announced during the Q1 2025 earnings report on May 1st.
In a post on X, Strategy's founder, Michael Saylor, disclosed that the capital will be raised through stock sales and debt.
"MSTR proves a 13.7% BTC Yield and a $5.8B gain in Bitcoin since start of year, doubles capital plan to $42B equity and $42B fixed income to buy more Bitcoin."
Strategy's doubled-down plan
In a departure from the previous $42B capital target in its 21/21 plan, the firm is now left with a mammoth $56 billion to raise.
According to Strategy, this will be accomplished through the sale of stocks such as MSTR, STRK, STRF, and debt via convertible notes. In fact, the firm announced a staggering $21 billion stock sale on May 1st.
Should Strategy successfully raise and allocate these funds, it could fuel Bitcoin's price.
The company's Bitcoin holdings currently sit at 553,555 BTC, making it the largest publicly traded firm globally holding the digital asset. This stash equates to 2.63% of the total 21 million BTC in circulation.
However, analysts over on X suggest that Strategy might hesitate to purchase more BTC due to several reasons. They point to subdued implied volatility concerning Strategy's stock (MSTR), requiring an increase for the firm to issue more leverage. Additionally, they suggest that sticky strike dynamics might make further Bitcoin purchases a challenge.
Price-wise, MSTR has rallied approximately 60% since hitting lows of $240 in April and now trades over $380. Over the same period, BTC bounced 28% to reached a new high of $97K since February.
Notably, MSTR has roughly doubled its initial Bitcoin gains during the Q2 2025 recovery.
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Analysts might question Strategy's eagerness to buy more Bitcoin, given factors like limited price volatility and the market environment. Here are some insights that could explain this:
- Subdued implied volatility of MSTR: Implied volatility, which forecasts the stock's future price swings, could play a crucial role in Strategy's decision-making. If MSTR's implied volatility is restrained, it might signal minimal anticipated significant price movements, potentially curbing the need for aggressive Bitcoin purchases that aim to capitalize on these potential fluctuations.
- Market conditions and volatility: Bitcoin price and volatility directly impact Strategy's investment strategy. If Bitcoin prices are not forecasted to fluctuate significantly, there may be less incentive for Strategy to aggressively acquire more Bitcoin. The firm often seeks large price movements to either increase the value of its holdings or to buy more Bitcoin during market downturns at lower costs.
- "42/42" plan objectives: Strategy's "42/42" plan aims to raise $84 billion over two years, with $42 billion coming from equity and $42 billion from fixed-income instruments. Analysts may squint at the plan's aggressiveness if they perceive that market conditions—especially limited price swings—are not favorable for maximizing returns on these investments.
- Risk management: If Bitcoin price and MSTR's stock volatility are minimal, there may be less urgency for Strategy to expedite Bitcoin purchasing. In this situation, risk-reward dynamics may shift, potentially curbing the urgency for rapid Bitcoin acquisition and pushing Strategy towards a more cautious and measured approach, focusing on strategic opportunities rather than an aggressive expansion plan.
- Michael Saylor, the founder of Strategy, has revealed that the firm plans to raise funds for its Bitcoin [BTC] investment through stock sales and debt, such as MSTR, STRK, STRF, and convertible notes, with a staggering $21 billion stock sale already announced.
- With its recent doubling of its capital plan, Strategy aims to invest $84 billion in Bitcoin [BTC], along with Ethereum [ETH] and other cryptocurrencies, as part of its strategic technology-focused finance approach to investing.
- Should Strategy successfully raise and allocate its funds, this could lead to further growth in the finance sector, particularly in the crypto market, as more institutional investors like Strategy shift toward investment in digital assets like Bitcoin [BTC] and Ethereum [ETH].
