Michael Saylor is at it again. MicroStrategy recently announced a plan to buy $42 billion worth of bitcoin by 2027. Saylor called the initiative the “21/21 Plan,” which involves raising $21 billion through equity via an at-the-market (ATM offering), and another $21 billion via debt. This strategy builds on MicroStrategy’s history of using debt instruments – like convertible notes and senior secured bonds – to fund Bitcoin acquisitions.

This news comes at a time when the U.S. Federal government is considering establishing a strategic bitcoin reserve, and bitcoin ETFs are seeing record inflows.

On November 22nd, MicroStrategy announced that they completed a $3B offering of convertible senior notes, signaling that the 21/21 Plan is firmly in motion. They didn’t waste any time purchasing more bitcoin, as a form 8-K filed on November 25th highlighted that the company acquired an additional 55,500 bitcoin.

During the week following that purchase, a form 8-K filed on December 2nd showed that MicroStrategy acquired another 15,400 bitcoin for approximately $1.5B.

These moves bring MicroStrategy’s total holdings to a whopping 402,100 bitcoin. According to Bitbo, there are currently 19,894,287 bitcoin in circulation, with 450 new bitcoin being added each day. This means that MicroStrategy currently owns about 2.02% of the total supply in circulation.

My Thoughts

While Saylor’s plan for MicroStrategy is already well underway, he’s also doing his part to try to influence other companies to follow his lead, most notably Microsoft. Saylor posted a three minute video on X on December 1st which he said included the slides he presented to Microsoft CEO Satya Nadella and the board of directors.

This comes after news that Microsoft shareholders will be voting on the “Assessment of Investing in Bitcoin” at their upcoming annual shareholders meeting on December 10th.

Other companies are also starting to take notice. MARA Holdings, Inc announced a $700 million offering on December 2nd, which was quickly oversubscribed and bumped to $850 million on the same day. MARA shared that proceeds from the offering would primarily be used to acquire bitcoin.

Metaplanet, which some are calling “Japan’s MicroStrategy,” recently announced a plan to acquire 9.5B Yen ($62 million) worth of bitcoin.

And it’s not all massive buys. Smaller companies, like Semler Scientific, are also dipping their toes. Semler recently added 215 more bitcoin to bring their total holdings to 1,273. After adopting a bitcoin treasury strategy in Q2 of 2024, Semler recently shared they’ve achieved a 37.3% return thus far.

Over the past week three biotechs–Acurx Pharmaceuticals, Hoth Therapeutics, and Enlivex Therapeutics–all announced plans to invest up to $1 million each in bitcoin.

As these moves continue to become more common, we’ll be keeping our eyes on the impact they could have on the digital asset space.

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Alternative investments – such as hedge funds and private equity/venture capital funds – are speculative and involve a high degree of risk. Likewise, the emergence of digital assets comes with its own speculative characteristics and involves a high degree of risk. Various digital assets have unique features, and the regulatory risk environment continues to change as governance requirements, rules, and lawsuits emerge. There may be material differences in the type of marketplaces available for digital assets, and there could be significant restrictions or limitations on withdrawing from or transferring these types of investments. Digital assets may incur higher fees when compared to traditional assets, and these expenses may offset returns.

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