Software company MicroStrategy is convening a special shareholder meeting to expand its stock issuance plans and purchase more Bitcoin (BTC).
According to Pursuant to a Dec. 23 proxy filing with the Securities and Exchange Commission, the company is seeking permission to increase the number of shares of both Class A common stock and preferred stock it is authorized to issue, and to issue additional shares as needed in the future. This increases the flexibility of
The first amendment would increase the authorized Class A common stock from 330 million shares to 10.33 billion shares, and the second amendment would increase the authorized preferred stock from 5 million shares to 1 billion shares. The aim is to increase the amount by more than that.
MicroStrategy's December 23, 2024 filing. source: street insider
The idea behind this proposal is MicroStrategy's 21/21 plan. The plan, unveiled in October, outlined the company's goal to purchase an additional $42 billion worth of Bitcoin over the next three years. The plan includes raising $21 billion through stock sales and another $21 billion through bonds.
According to MicroStrategy's filing:
“Proposals 1 and 2 of this special meeting provide for an increase in the Company's authorized stock in order to support the further implementation of the Company's 21/21 Plan and future capital market activities, as well as other corporate objectives more generally. That’s what I demand.”
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The company has been acquiring BTC regularly since 2020, but has stepped up its purchases since the plan was announced. In December alone, he bought 42,162 Bitcoins, worth more than $4 billion at current prices.
At the end of October, MicroStrategy reported that its BTC yield was 17.8% and that it had plans to achieve an annual yield of 6% to 10% from 2025 to 2027. Since then, the company has reportedly raised $13 billion through an equity issue and $3 billion through a convertible bond issue.
“The Company is executing its 21/21 Plan significantly faster than originally anticipated,” the filing states.
As of December 22, the company and its subsidiaries collectively held approximately 444,262 BTC, worth approximately $43.53 billion. Coins were acquired for a total of $27.7 billion, with an average purchase price of $62,257 per BTC.
MicroStrategy currently holds over 444 million BTC. sauce: sailor tracker
The company's stock price on Nasdaq has increased over 422% since the beginning of the year, largely due to the company's Bitcoin strategy. The schedule for the extraordinary general meeting of shareholders has not been announced. The next financial report is scheduled for February 2, 2025.
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