On May 2, 2025, Strategy (formerly MicroStrategy), the Nasdaq-listed software firm known for its aggressive Bitcoin accumulation, announced a plan to raise an additional $21 billion to buy even more Bitcoin. This move is part of its long-term “21/21” strategy aimed at securing a dominant position in the Bitcoin market.
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| Strategy plans to raise $21B to buy Bitcoin |
Overview of the Capital Raising Plan
In Q1 2025, Strategy reported a net loss of $4.2 billion, largely due to an unrealized loss of $5.91 billion from its Bitcoin holdings following a sharp BTC price correction. Despite this, the company doubled down, unveiling a plan to raise $21 billion by issuing STRK preferred shares under an at-the-market (ATM) offering structure.
These STRK shares carry an 8% fixed annual yield, no maturity date, and quarterly dividend payouts. Investors will also have the option to convert STRK into MSTR Class A common stock or redeem the shares under certain triggering events.
$MSTR 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 for 2025. https://t.co/LgeMEd6Dr5
— Michael Saylor (@saylor) May 1, 2025
The “21/21” Strategy: A Bold Vision
First announced in October 2024, the “21/21” strategy sets out to raise $21 billion from equity and $21 billion from bonds between 2025 and 2027 to buy Bitcoin. It is, by far, the most ambitious crypto treasury strategy ever initiated by a publicly traded company.
As of April 28, 2025, Strategy holds 553,555 BTC, representing about 2.64% of Bitcoin’s total supply. The holdings are currently worth over $53 billion, solidifying Strategy as the largest institutional holder of Bitcoin globally.
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| Bitcoin purchase history of Strategy. Source: Saylor Tracker (May 2, 2025) |
Performance & Market Impact
Although the company reported losses in Q1, Strategy claimed its year-to-date (YTD) Bitcoin investment return stands at 13.7%. They also raised their 2025 profit outlook from 15% to 25%, projecting potential earnings of up to $15 billion from their crypto strategy.
Meanwhile, MSTR stock has started to recover following a Bitcoin rally in April 2025. Bitcoin is currently trading around $96,956, marking an 18% increase compared to the end of March.
These dynamics indicate that Strategy’s financial performance is now heavily tied to Bitcoin price movements — both a strength and a vulnerability.
Risks and Challenges
Strategy’s aggressive Bitcoin strategy isn’t without risk:
- High Market Volatility: Bitcoin’s price swings can result in significant unrealized losses.
- Shareholder Dilution: Raising capital through equity could dilute existing MSTR shareholders.
- Regulatory & Financial Risk: The scale of the investment raises concerns about overexposure and balance sheet concentration.
Yet, CEO Michael Saylor and the company remain confident that Bitcoin’s long-term value will far outweigh short-term fluctuations.
Could This Change the Corporate Crypto Game?
If Strategy succeeds in raising $21 billion and Bitcoin continues to appreciate, it may encourage other mid-cap and tech firms to consider digital assets as a core treasury reserve. Strategy’s conviction may help shift crypto from speculative investment to corporate financial strategy.
This move also continues to set a precedent in public markets: few companies have ever gone all-in on a single, volatile asset class — let alone one with regulatory ambiguity.
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| Recent price fluctuations of Strategy's MSTR stock. Source: TradingView (May 2, 2025) |
Conclusion
Strategy’s plan to raise $21 billion for additional Bitcoin purchases is both risky and visionary. While critics warn of financial overexposure, supporters see this as a once-in-a-generation bet on digital scarcity and monetary independence.
As Bitcoin matures and institutional interest grows, Strategy's actions could redefine the relationship between corporate finance and cryptocurrency for years to come.
Read more: Strategy.com Buys $55.58M in Bitcoin – Institutional Confidence Grows