Strategy Announces $84 Billion Capital Plan to Boost Bitcoin Reserves
1min read Strategy, a publicly traded company renowned for its substantial investment in Bitcoin, has unveiled an ambitious capital plan named the “42-42 Capital Plan.” This initiative aims to secure $42 billion in equity and an additional $42 billion in fixed income by the end of 2027. Central to this plan is a $21 billion “at-the-market” common stock offering, designed to bolster the company’s Bitcoin reserves. This new offering builds on the previously authorized “21-21 Plan” from October, highlighting Strategy’s unwavering commitment to Bitcoin accumulation.
The new capital plan comes at a time when Strategy has $128 million remaining for future issuance and sale under the existing program. Additionally, the company has doubled its planned debt purchase program to $42 billion, with $14.6 billion still outstanding. This aggressive financial strategy underscores Strategy’s bullish outlook on Bitcoin, despite reporting a $4.2 billion unrealized loss in the first quarter of 2025. The loss was attributed to accounting changes and lower Bitcoin prices during the period.
Despite the Q1 setback, Strategy has raised its targets for Bitcoin yield and dollar gains. The company now anticipates a 25% Bitcoin yield in 2025, up from the previous target of 15%, and has increased its Bitcoin dollar gain target from $10 billion to $15 billion. As of April 28, 2025, Strategy held 553,555 Bitcoin, acquired at a total cost of $37.9 billion, or an average of $68,500 per Bitcoin. Based on current Bitcoin prices, Strategy’s holdings are approximately 40% in profit.
The company’s stock saw a 2% rebound in pre-market trading following the announcement of its Q1 earnings report. This positive market reaction suggests that investors are optimistic about Strategy’s long-term commitment to Bitcoin. The recent uptrend in Bitcoin prices, currently trading at $96,775, has further fueled this optimism. Investors view Strategy’s Bitcoin-heavy balance sheet as a potential long-term growth driver, despite the short-term volatility in the cryptocurrency market.
Strategy’s aggressive Bitcoin accumulation strategy and its new capital plan reflect a strong belief in the future of digital currencies. The company’s decision to double down on Bitcoin, even in the face of short-term losses, signals confidence in the long-term value and potential of the cryptocurrency. This strategic move positions Strategy as a key player in the evolving landscape of digital assets, with a clear focus on leveraging Bitcoin as a cornerstone of its investment portfolio.
