Strategy Doubles Down on Bitcoin With $21B Offering and Bold $84B 42/42 Plan

Now known simply as Strategy, the firm formerly called MicroStrategy, has definitively secured its spot as the worlds largest corporate holder of Bitcoin.

It certainly made headlines yet again with its Q1 2025 financial results. The firm revealed it now holds an absolutely mind-boggling 553,555 BTC as of April 28the product of a total investment of $37.9 billion. Thats about $68,459 per Bitcoin, on average. But with current market prices giving the holding an estimated value of roughly $52 billion, Strategy has also accelerated its transition from a software firm to a public Bitcoin investment vehicle.

This most recent quarterly update emphasizes that transformation, with the leadership of the Strategy directing a laser-like focus on goodwill accumulation and growth. Despite a reported Q1 company loss of $4.23 billion and a 3.6% year-over-year revenue decrease to $111.1 million, the entity is moving ahead with plans to spend huge new amounts of capital.

An Aggressive Pivot Away From Software

This quarter, Strategys actions offer very clear signals about the priorities it has chosen. Once its foundation, the software business has been overshadowed by a Bitcoin-centric effort. While its top-line income and net profit have declined, the company measures success these days through the increasing number of Bitcoin it holds and the enhanced value it expects its Bitcoin to generate in the future.

In a daring action, Strategy has upped its 2025 Bitcoin return target from 15% to 25%. This is a huge jump that shows their expectation of a more effective use of BTC reveals in one of three ways: using yield-producing financial instruments, through partnerships, or by using on-chain financial products. Indeed, Strategy raised its Bitcoin profit projection as wellfrom a previous target of $10 billion in gains to a $15 billion target now. And this is with no change in the BTC price across these two forecast years. So, if you believe in this companys forecasting ability, you have no reason not to expect much more effective use of Bitcoin actives across these years.

Strategy (formerly MicroStrategy) reported Q1 2025 results, disclosing bitcoin holdings of 553,555 BTC as of April 28 at a total cost of $37.9 billion, or $68,459 per BTC, with an estimated market value of approximately $52 billion. The company raised its 2025 BTC Yield target
Wu Blockchain (@WuBlockchain) May 1, 2025

To underwrite these goals, Strategy declared a new $21 billion at-the-market (ATM) equity offering, intended to further augment its Bitcoin acquisition program. This capital raise follows a model used successfully in years past to light the fires of an accumulation strategy. But all of this is just a small part of a much larger and very aggressive financial plan.

The 42/42 Plan: A New Chapter in Bitcoin Corporate Accumulation

In what is possibly the most audacious aspect of the update, Strategy revealed its new 42/42 Plana sweeping initiative to amass an incredible $84 billion in total capital to acquire even more Bitcoin. This plan is twice as big as last years 21/21 Plan and reflects both an escalation in ambition and a doubling down on Bitcoins strategic importance to the firm.

MicroStrategy is focusing on Bitcoin over software, planning to buy more despite a Q1 loss of $4.23B and a 3.6% revenue drop to $111.1M. They introduced a new 42/42 Plan to raise $84B for Bitcoin, following last year's 21/21 Plan. Analysts view the stock as a strong pic.twitter.com/Qi3wKSBX3L
Crypto Crib (@Crypto_Crib_) May 2, 2025

The designation 42/42 makes a symbolic gesture to the companys vision of exponentially accumulating Bitcoin, making it twice as large, not only in the kinds of things one would traditionally accumulate (e.g., money, in our case Bitcoin), but also in the timeframe one would expect to take to accumulate those kinds of things. So, you know, its really just a plan for the next couple of decades. Its still in the works (what isnt these days?), but it seems to involve some relatively traditional tools (equity offerings, and yes, even some debt) and some semi-traditional Bitcoin fundraising strategies.

Very few in the corporate world have shown this kind of commitment. While many companies have cautiously made small forays into Bitcoin or blockchain investments, Strategy has gone much further, pulling in far more dollars for its far more straightforward calls to do so.

A Bitcoin Proxy in the Equities Market

Strategys transformation has piqued the interest of Wall Street. Analysts and institutional investors now see its stock as a Bitcoin substitute. Strategy currently trades at a $2.13-for-every-$1 net asset value (NAV), only because investors trust it will deliver more Bitcoin-like returns over the next 24 months than most publicly traded companies. Thats a pretty low threshold given the operational losses its racking up in what used to be the companys cash-cow business.

The companys stock typically outperforms traditional tech counterparts when Bitcoin rises. Even during brief corrections in BTC, it has demonstrated resilience, which underscores investor belief in the long-term value of the companys digital asset portfolio.

As Bitcoin use continues to spread and institutions ramp up their interest, Strategy is doing everything possiblewithin a somewhat healthy managerial constraintto lay claim to being the chief corporate custodian of sound digital money. Now, this could truly be a recipe for disaster, given how far from its value-investing comfort zone the firm seems to be straying, and how undercooked its Bitcoin educational materials are. But that isnt whats happening. Rather, its this: a firm representing a style of investing thats long on value appears to be courting the Bitcoin community very hard indeed.

As we enter the second quarter, the question everyone is asking is this: How quickly can Strategy deploy its new $21 billion raise? And while were on the topic, is the 42/42 Plan the next big thing in Bitcoins march into the corporate financial mainstream?

Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.

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