MicroStrategy plans to expand its equity-issuance strategy and bolster its Bitcoin holdings. As disclosed in a Dec. 23 filing with the SEC, the company has called a special shareholders’ meeting to seek approval for increasing authorized shares of both Class A common stock and preferred stock.
Authorized Class A shares will increase to 10. 33 billion, and preferred shares to 1. 005 billion as part of the proposed changes. With this action, MicroStrategy hopes to give future capital-raising initiatives more flexibility under its ambitious 21/21 Plan.
The plan calls for $42 billion in Bitcoin acquisitions, which will be financed equally by fixed-income and equity instruments. According to MicroStrategy’s filing, these ideas complement its changing objectives as a treasury firm with a focus on Bitcoin.
By raising $13 billion through stock issuances and $3 billion through convertible bonds, the company has expedited the implementation of its plan. At current prices, the company’s acquisition of 42162 Bitcoin in December alone was worth over $4 billion.
MicroStrategy current Bitcoin holdings and valuation
Currently, MicroStrategy and its affiliates hold about 444262 Bitcoin, which is worth $432. 5 billion. The average cost to buy one Bitcoin is $62257. The company’s stock price is up 422% so far this year due to this aggressive approach.
Shareholders can participate online and vote on proposals during the virtual special meeting. The precise date has not yet been revealed. The company’s next earnings report, though, is anticipated in February. 2. 2025.
The company’s equity incentive plan will also be amended as part of the meeting agenda to attract new directors. Brian Brooks, Jane Dietze, and Gregg Winiarski recently added to MicroStrategy’s board, emphasizing the value of knowledge of digital assets and legal issues.
However, MicroStrategy is demonstrating a growing commitment to incorporating cryptocurrency into corporate treasury operations as it proceeds with its audacious Bitcoin acquisition strategy. Nevertheless, the meeting’s conclusion may have a big impact on its development.
