In today’s special shareholder meeting, MicroStrategy discusses its $42 billion Bitcoin strategy.
The meeting focuses on MicroStrategy’s 21/21 Plan, an ambitious $42 billion three-year deal.
MicroStrategy focuses on ensuring the firm’s financial sustainability and stability through these deals.
Michael Saylor’s MicroStrategy has scheduled a special shareholder meeting today to discuss its $42 billion Bitcoin investment strategy. Held via live webcast, the meeting will focus on two proposals to accelerate the company’s Bitcoin investments. Reportedly, MicroStrategy envisions expanding its stock issuance limit, thereby boosting the company’s Bitcoin purchases.
Notably, MicroStrategy puts forward an amendment to Article Four of the Second Restated Certificate of Incorporation with the vision of increasing the number of authorized shares of Class A common stock from 330,000,000 to 10,330,000,000 to support future financing. The company also seeks to increase the number of authorized shares of preferred stock from 5,000,000 to 1,005,000,000 to expand financing options. The proposals concentrate on accelerating MicroStrategy’s 21-21 Plan, an ambitious $42 billion three-year deal introduced in October 2024.
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The 21-21 plan intends to raise $21 billion through equity financing and an additional $21 billion through bond issuance over a period of three years. As per Saylor’s statement, these funds would be used to purchase more Bitcoin, strengthening the company’s BTC portfolio. MicroStrategy has accumulated Bitcoin since 2020, with its current holding reaching 444,262 BTC, worth around $42 billion.
During the meeting, the shareholders would be directed to vote for/against these proposals. If approved, Proposal 1 would provide flexibility to the company to raise capital by issuing common equity or convertible instruments. It allows them to respond to changing market conditions and choose the most advantageous funding options. At the same time, Proposal 2 will allow MicroStrategy to issue preferred stock with customizable terms set by its Board of Directors. The plan gives them the opportunity to offer a broader range of securities as part of the 21/21 Plan.
In addition to Proposals 1 and 2, the shareholders’ meeting will consider updating MicroStrategy’s 2023 Equity Incentive Plan. The move attempts to provide automatic equity awards to new board members, aligning their compensation with the company’s Bitcoin-focused strategy. Thus, MicroStrategy ultimately focuses on ensuring the firm’s financial sustainability and stability.
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