Be Like Mike: MicroStrategy's $42 Billion Bitcoin Bid

Happy Monday Bitcoiners, it's Bam here with another Bitcoin update!

Each week, our team at Bitcoin News saves you time by curating the most impactful events into a concise, easy-to-read update.

Notable events this week include:

• MicroStrategy plans to raise $42 billion to expand its Bitcoin holdings.

• Argentina’s Central Bank showcases live Bitcoin mining in a public exhibition.

• Donald Trump sees his 30-point lead on betting markets disappear in 3 days.

Let’s dive in! ⚡

Want the latest research diving deep into on-chain metrics to keep you ahead of the game? Subscribe to our Bitcoin Insights newsletter for more alpha 👇

LATEST NEWS 📰

🙌 ADOPTION

• OpenSats awards grants to four projects aimed at growing the Bitcoin ecosystem: Citadel-Tech, Lampo, Cashu Nutshell, PickhardtPayments Plugin.

• Visa in partnership with Coinbase, launches real-time Bitcoin and crypto purchases using debit cards.

• Mexican Bitcoiners create a Día de los Muertos altar for Satoshi, honoring his desire to keep his identity unknown.

⚖️ LEGAL

• Tether CEO  confirms their reserves include 82,454 BTC and 48.3 tons of gold. Q3 results show a record $2.4 billion profit.

• Craig Wright faces contempt of court charges over his $1.2 billion lawsuit against Jack Dorsey’s company, Block.

• UK launches the “Office for Digital Identities and Attributes” to support the rollout of a national digital ID.

📈 MARKETS

• MicroStrategy announces plans to raise $42 billion over the next three years to buy Bitcoin, split between $21 billion in equity sales and $21 billion in debt offerings.

• Metaplanet purchases an additional 156.78 BTC, bringing its total holdings to 1,018.17 BTC.

• BlackRock's Bitcoin ETF surpasses $30 billion in assets in just 293 days, making it the fastest-growing ETF in history.

⛏️ MINING

• Argentina’s Central Bank (BCRA) is hosting a unique art exhibit, becoming the first financial institution to showcase live Bitcoin mining.

• Canaan, a provider of high-performance computing solutions, announced it will supply 3,800 Avalon A1566I Immersion Cooling Miners to Cleanspark.

• Bitfarms has entered a second hosting agreement with Stronghold Digital Mining to deploy 10,000 miners at sites in Pennsylvania.

🗳️ POLITICS

• Donald Trump sees his strong lead in the betting markets narrow as election day approaches.

• Three of the six new BRICS members—UAE, Argentina, and Ethiopia—are mining Bitcoin using government resources.

• Florida Chief Financial Officer Jimmy Patronis has sent a letter to the state regulatory board, urging the addition of Bitcoin to state pension funds.

BAMS 2 SATS 🧢

This week brought some remarkable news: MicroStrategy’s earnings call unveiled an ambitious plan. Over the next three years, they’ll raise an astounding $42 billion—split between $21 billion in stock issuance and $21 billion in convertible bonds—to buy more Bitcoin.

At the time of the announcement, MicroStrategy was valued at about $48 billion, with around $18 billion in Bitcoin on its balance sheet. Raising nearly 100% of their valuation is unprecedented, especially for a company earning under $100 million annually from its core business intelligence operations. But as we know, they now identify as a “Bitcoin Treasury Company.”

The real question is: can they actually pull it off? Could they dilute their stock enough to raise this level of capital?

Right now, maybe not. But Michael Saylor seems to be playing a strategic game. For MicroStrategy to raise that much, they’d need to boost their valuation first. Perhaps the plan is that announcing an ‘open Bitcoin purchase order’ of this size will prompt other institutions to buy in first, driving Bitcoin’s price up and, in turn, increasing MicroStrategy’s enterprise value.

Let’s break down the potential impact on Bitcoin:

A $42 billion purchase spread over 36 months would mean $1.2 billion of Bitcoin buying pressure each month. With only 450 Bitcoins mined daily, if MicroStrategy were the sole buyer and miners the only sellers, equilibrium would imply a Bitcoin price of $88,888.

The key question is whether Saylor can start this buying spree at current prices or if he’ll need a higher Bitcoin price and valuation to begin.

Meanwhile, Bitcoin adoption continues to spread across institutions, with Microsoft’s vote coming up next month and positive signals from their management team.

Looking long-term: if MicroStrategy accumulates $42 billion in Bitcoin over the next three years, either the average Bitcoin price will exceed $250,000, or the company will end up holding over 2% of Bitcoin’s total 21 million supply.

It’s remarkable to see the positive narrative surrounding Bitcoin today. Just a few years ago, it faced much stronger opposition from governments and media. This shift feels like what one might expect as Bitcoin begins “crossing the chasm.”

Keep on stacking!
Bam

Saylor’s Words of Wisdom

Nobody does it like Saylor. Some say his latest $42 billion Bitcoin plan could catapult him into the world’s top ten richest people.

Don’t miss our interview with him in Prague, where he shares insights on weaving Bitcoin into your life plans.