MicroStrategy Proposes Significantly Increasing Number of Shares to Buy More Bitcoin
MicroStrategy, the largest corporate holder of Bitcoin, has proposed a substantial increase in its authorized shares to enhance its ability to pursue its Bitcoin-focused strategy.
The software company is seeking shareholder approval to raise its Class A common shares from 330 million to 10.33 billion and its preferred shares from 5 million to 1.005 billion, according to a proxy statement filed with the Securities and Exchange Commission (SEC).
The move comes as part of MicroStrategy’s ambitious “21/21” plan, a three-year strategy aimed at securing $42 billion in capital.
MicroStrategy Aims to Raise $42 Billion to Fund Bitcoin Acquisitions
The plan envisions raising $21 billion through equity capital and $21 billion via fixed-income instruments, including debt, convertible notes, and preferred stock.
These funds would back the company’s future Bitcoin acquisitions and strengthen its position as a Bitcoin treasury firm.
In addition to the proposed increase in shares, MicroStrategy’s proxy statement outlines a new equity incentive plan to grant automatic equity awards to incoming board members.
The company recently expanded its board of directors from six to nine members, appointing Brian Brooks, Jane Dietze, and Gregg Winiarski.
Brooks, a former CEO of Binance.US, and Dietze, a board member at Galaxy Digital, bring notable expertise to the company’s growing focus on cryptocurrency.
“The proposals we are asking you to consider reflect a new chapter in our evolution as a Bitcoin Treasury Company and our ambitious goals for the future,” MicroStrategy co-founder and executive chairman Michael Saylor said.
While the exact date for the shareholder vote is yet to be announced, it is expected to take place in 2025.
MicroStrategy’s commitment to Bitcoin began in 2020 when co-founder Michael Saylor declared the cryptocurrency as the company’s primary treasury asset.
Earlier this week, Saylor announced the acquisition of 5,262 additional Bitcoin for $561 million, bringing the company’s total holdings to 444,262 BTC, valued at over $41.6 billion.
Despite its growing Bitcoin portfolio, MicroStrategy’s stock fell 8.78% on Monday, closing at $332.23.
The stock has lost 17.6% in the past month but has seen a remarkable 450% growth over the past year. Meanwhile, Bitcoin’s price dipped 1.6% in the last 24 hours to $93,932.
MicroStrategy to Join Nasdaq 100 Index
The announcement comes as MicroStrategy prepares to join the Nasdaq 100 index on December 23, 2024.
The inclusion places the company among the top 100 largest firms on the Nasdaq by market capitalization, offering indirect Bitcoin exposure to stock investors, including those holding the Invesco QQQ Trust (QQQ), an ETF managing assets worth $322 billion.
As reported, Saylor has also expressed strong support for President-elect Donald Trump’s proposal to establish a strategic Bitcoin reserve.
Detailed in his “Digital Assets Framework” policy published Friday, the proposal outlines a roadmap for the United States to foster growth in the digital asset industry, establish clear compliance standards, and ensure defined rights for crypto asset holders and companies.
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