MicroStrategy, a prominent business intelligence software company, recently held a special shareholder meeting to seek approval for expanding its stock issuance program. This move is designed to support the firm’s ambitious plan to acquire more Bitcoin.
According to a proxy statement filed with the U.S. Securities and Exchange Commission (SEC) on December 23, the company aims to increase the number of authorized Class A common shares and preferred shares. This adjustment would provide greater flexibility for future equity offerings when needed.
The first proposed amendment seeks to raise the number of authorized Class A common shares from 330 million to 10.33 billion. The second proposal intends to increase authorized preferred shares from 5 million to over 1 billion.
These initiatives are part of MicroStrategy’s “21/21 Plan,” introduced in October. The strategy outlines the company’s goal to purchase an additional $42 billion worth of Bitcoin (BTC) over the next three years. The plan includes raising $21 billion through stock sales and another $21 billion via fixed-income securities.
As stated in the company’s filing:
“Proposals 1 and 2 at this special meeting request an increase in the company’s authorized share capital to support the further implementation of our 21/21 Plan and broader future capital market activities, among other corporate purposes.”
Accelerated Bitcoin Acquisitions
MicroStrategy has been consistently accumulating Bitcoin since 2020 and has significantly accelerated its purchases since announcing the 21/21 strategy. In December alone, the company acquired 42,162 BTC, worth over $4 billion at current market prices.
In late October, MicroStrategy reported a BTC-related yield of 17.8%. The company aims to achieve an annual yield between 6% and 10% from 2025 to 2027. Since the plan’s announcement, the firm has raised $13 billion through equity issuance and $3 billion via convertible notes.
The filing highlighted:
“Our execution of the 21/21 Plan has progressed significantly faster than originally anticipated.”
As of December 22, MicroStrategy and its subsidiaries hold approximately 444,262 BTC, valued at around $43.5 billion. The total acquisition cost for these assets was $27.7 billion, with an average purchase price of $62,257 per Bitcoin.
Market Performance and Future Plans
MicroStrategy’s stock, traded on Nasdaq, has surged more than 422% year-to-date, largely driven by its Bitcoin investment strategy. While the exact date of the special shareholder meeting was not disclosed, the company’s next earnings report is scheduled for February 2, 2025.
The firm’s aggressive Bitcoin accumulation reflects growing institutional interest in cryptocurrency as a treasury reserve asset. This approach has positioned MicroStrategy as a corporate leader in digital asset adoption.
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Frequently Asked Questions
What is MicroStrategy’s 21/21 Plan?
The 21/21 Plan is MicroStrategy’s strategy to acquire an additional $42 billion in Bitcoin over three years. It involves raising $21 billion through stock sales and another $21 billion through fixed-income securities.
How much Bitcoin does MicroStrategy currently own?
As of December 22, the company holds approximately 444,262 BTC, acquired at an average price of $62,257 per Bitcoin. The total value of its holdings is around $43.5 billion.
Why is MicroStrategy increasing its authorized shares?
The increase in authorized Class A common and preferred shares provides flexibility for future equity offerings. This supports the company’s capital-raising efforts for Bitcoin acquisitions and other corporate activities.
How has MicroStrategy’s stock performed?
The company’s stock has risen over 422% year-to-date, largely due to its Bitcoin investment strategy and growing confidence in its digital asset treasury approach.
Where can I learn more about corporate Bitcoin strategies?
For a deeper understanding of how companies integrate Bitcoin into their financial systems, access advanced resource guides here.