MicroStrategy Inc. plans to sell shares to raise $21 billion. These funds will then be used to buy Bitcoin. This plan surpasses Tesla’s Bitcoin investment milestone set four years ago.
Microstrategy plans on selling shares worth a record $21 billion to the market, in order to add more Bitcoin to its portfolio. This has been done by several other companies like GameStop Corp and AMC Entertainment Holdings Inc.
According to a Bloomberg report, the figure which was announced on Wednesday surpasses the world’s four largest deals.
In 2020, Tesla had raised $10 billion over three months in two different deals. On the other hand, healthcare REIT Welltower Inc. collected $11 billion over several programs spanning several years.
Microstrategy also plans to sell fixed-income securities
Along with the announcement of a $21 billion funding plan, Microstrategy also plans to fixed-income securities. The goal is to double the funding to $42 billion. The CEO Phong Le pointed to the number 42 as an inspiration from the science fiction series The Hitchhiker’s Guide to the Galaxy, in which the supercomputer gives the 42 number as “the answer to life, the universe, and everything.”
The CEO said “We think it’s a special number. It’s also 21 plus 21.” According to him, 21 is a special number for Bitcoin since there is the possibility of only 21 million Bitcoins in total.
Over the last year, the stock of Microstrategy has seen immense growth. It increased by up to 475% regardless of the the dip on Thursday. This also surpasses Bitcoin’s won’t growth of 105% during the same time.
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