MicroStrategy, the largest institutional holder of Bitcoin, is on an accelerated path to increase capital for expanding cryptocurrency assets, according to Mizuho Securities.
Bitcoin Correlation and MicroStrategy Investments
Mizuho Securities reports a 79% correlation between the growth of wallet addresses with over 0.01 BTC and Bitcoin's price. This trend supports MicroStrategy's strategy of using debt and equity issuance to enhance its Bitcoin holdings.
21/21 Plan: Capital Increase
MicroStrategy launched the '21/21 Plan', aiming to raise $21 billion in debt and equity by 2027 to support Bitcoin purchases. Since announcing the plan in October, the company has raised $3 billion in debt and $18 billion in equity, surpassing forecasts.
Bitcoin Accumulation Projections by 2027
According to Mizuho's calculations, by the end of 2027, MicroStrategy could own 783,000 BTC, assuming an average market price of $166,000 per Bitcoin, which would value the company's portfolio at approximately $130 billion.
MicroStrategy is poised to further expand its cryptocurrency portfolio, thereby securing a significant stance in the institutional Bitcoin investment market due to its strategy and early market entry.
