- MicroStrategy’s 21/21 Plan targets $42B in funding, split between equity and fixed-income for Bitcoin growth.
- Q3 revenue fell by 10.3% amid lower product sales, with operating losses at $432.6M and net loss at $340.2M.
- New BTC Yield target set to 6-10% for 2025-2027, reflecting caution in volatile markets for future stability.
MicroStrategy announced its third quarter results and revealed a 5.1% rise in BTC Yield. The company also announced an ambitious 21/21 Plan to raise $42 billion within the next three years in order to fuel the company’s Bitcoin acquisition strategy.
Strategy and Financial Targets
MicroStrategy’s 21/21 Plan will split the $42 billion target evenly between equity and fixed-income securities, with $21 billion each. According to the company, this dual approach will reinforce its treasury reserve strategy, intending to increase its Bitcoin holdings and strengthen capital reserves.
As of September 30, MicroStrategy owns about 252,220 Bitcoins. In spite of its assets, MicroStrategy achieved a 17.8% BTC Yield so far this year, showing a steady but careful attitude towards its cryptocurrency investments during volatile market conditions.
Revenue and Expense Report
MicroStrategy posted $116.1 million in revenue for the third quarter, falling short of estimates by $8 million and reflecting a 10.3% decline from last year. The shortfall stemmed from lower product license and support revenues.
The company raised $2.1 billion in Q3 through equity and debt, expanding its Bitcoin reserves by 11% while managing to reduce annual interest expenses by $24 million.
Operating expenses reached $514.3 million, largely driven by $412.1 million in impairment losses on digital assets. Consequently, MicroStrategy reported a loss from operations amounting to $432.6 million. The net loss for Q3 was $340.2 million, translating to $1.72 per diluted share.
New BTC Yield Target Amid Market Adjustments
In anticipation of the future, MicroStrategy has revised its Bitcoin Yield goal for 2025–2027 to a more modest 6–10% range, showing a careful strategy due to continued market instability.
In order to strengthen its assets, the company has declared a new at-the-market equity offering of up to $21 billion for more Bitcoin purchases and improving shareholder value.
MicroStrategy’s stock saw a sharp reaction following the announcement. Despite these fluctuations, company leadership remains committed to its Bitcoin strategy.
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