Increased Bitcoin Purchase Strategy to $84 Billion, Despite Incurring Record First-Quarter Losses
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Despite reporting a record $4.2 billion loss in Q1, MicroStrategy plans to double its capital-raising efforts, aiming to buy even more Bitcoin. In a recent earnings call, MicroStrategy announced a new goal to boost its Bitcoin yield to an impressive 25% and increase its Bitcoin holdings value to $15 billion.
The company's Bitcoin yield currently stands at 13.7%, translating to roughly $5.8 billion in Bitcoin gains year-to-date. Known as a solid corporate holder of Bitcoin, MicroStrategy owns 553,555 BTC with an average cost of $68,459 per coin.
To achieve this new ambitious goal, MicroStrategy will be doubling its capital raising plan to a staggering $84 billion, splitting the funds between equity and fixed income. The revised Bitcoin targets include an increased yield target of 25% and a higher Bitcoin gain target of $15 billion.
This aggressive financial strategy might introduce volatility, with the potential for dilution caused by the new offering. However, MicroStrategy remains focused on its long-term Bitcoin-driven goals, as expressed by CEO Michael Saylor: "MSTR to the max!"
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Sources:1. Strategy Announces BTC Yield of 13.7% and BTC $ Gain of $5.8B year-to-date, doubles capital plan to $42B equity and $42B fixed income to purchase bitcoin, and increases BTC Yield target from 15% to 25% and BTC $ Gain target from $10B to $15B. Twitter. (May 1, 2025). [Link]2. MicroStrategy Reports Q1 Loss, Boosting Its Bitcoin Purchase Plan. CoinDesk. (May 1, 2025). [Link]3. MicroStrategy's First Quarter Earnings — Bitcoin (BTC) Holdings, Yield & Targets. Bitcoin Magazine. (May 1, 2025). [Link]4. MicroStrategy Gains More Than 20% Year-To-Date. Google Finance. (May 1, 2025). [Link]5. MicroStrategy Q1 Results Show Major EPS Miss. Forbes. (May 1, 2025). [Link]
Analysts are closely watching MicroStrategy's plan to raise a total of $84 billion in capital, hoping that the funds will be used to increase its Bitcoin holdings to $15 billion, as expressed in the company's updated targets. In the business world, this aggressive financial strategy could potentially add volatility due to the risk of dilution caused by the new offering. As the company aims to boost its Bitcoin yield to an impressive 25%, it may be wise for investors to stay informed on the latest news about this bitcoin-focused business in the finance industry. Join our Telegram channel for updates on MicroStrategy's bitcoin-driven plans and more.
