Strategy, the company formerly known as MicroStrategy, has announced an ambitious plan to raise a total of $84 billion to increase its $BTC holdings. This aggressive move falls under what the company calls the “42/42 Plan,” which includes raising $42 billion through equity and another $42 billion through debt by the end of 2027. The plan builds on the earlier “21/21 Plan,” through which Strategy had already raised $28.3 billion. The goal now is to secure an additional $56.7 billion over the next 32 months. This expansion highlights Strategy’s ongoing commitment to Bitcoin as a core treasury asset.

Wall Street analysts have responded positively to the plan. Benchmark analyst Mark Palmer maintained a “buy” rating on Strategy’s stock with a $650 price target, citing the company’s early-mover advantage and proven track record of delivering value through its $BTC -focused treasury strategy. TD Cowen’s Lance Vitanza also endorsed the plan, setting a $550 price target and acknowledging that while the scale of the initiative is ambitious, Strategy has the market capitalization (currently at $111 billion) and trading liquidity to make it feasible.

As part of this new phase, Strategy has increased its performance targets for 2025. The company now aims for a 25% return on its Bitcoin holdings—up from the previous 15%—and is targeting gains of $15 billion instead of the earlier $10 billion. These updated targets signal a confident outlook on Bitcoin’s long-term value and the company’s ability to leverage capital effectively.

To finance its strategy, the company plans to use innovative financial instruments like convertible perpetual preferred stock that offer over 9% yield. This approach takes advantage of the premium at which Strategy’s stock trades relative to its net asset value, allowing continued fundraising. However, this tactic also carries risks, particularly if the premium narrows or if Bitcoin prices fall, potentially leading to shareholder dilution.

Overall, Strategy’s massive $BTC expansion plan is seen as a major institutional endorsement of the cryptocurrency. With Wall Street support and a structured financial model, the company’s approach may influence other firms to explore similar Bitcoin treasury strategies.

#Bitcoin #MicroStrategy #Bullish #BitcoinNews #TRUMP #BTC #BinanceAlpha #Binance