Crypto software firm MicroStrategy is
Crypto software firm MicroStrategy is planning to hold a special shareholders’ meeting to boost its capacity to buy more Bitcoin (BTC), according to a recent SEC filing. The company wants to increase the number of authorized shares for both Class A common stock and preferred stock, allowing it greater freedom to issue extra shares whenever necessary in the future.
The first proposal aims to
The first proposal aims to raise the authorized Class A common stock from 330 million shares to 10.33 billion shares, while the second proposal intends to increase the authorized preferred stock from 5 million shares to over 1 billion shares. These changes would support the implementation of MicroStrategy’s “21/21 Plan,” which was unveiled in October.
This ambitious plan outlines the
This ambitious plan outlines the company’s intention to spend an additional $42 billion on Bitcoin over the next three years. To fund this initiative, MicroStrategy plans to raise $21 billion through equity sales and another $21 billion by issuing fixed-income securities. Since announcing the 21/21 Plan, MicroStrategy has accelerated its Bitcoin buying spree.
In December alone, it purchased
In December alone, it purchased 42,162 BTC, valued at over $4 billion based on current market rates. By the end of October, the company had reported a Bitcoin yield of 17.8%. It expects its annual yield to range between 6% and 10% between 2025 and 2027. As part of its funding strategy, MicroStrategy has already managed to raise $13 billion through stock issuances and $3 billion through convertible bond offerings.
As of December 22nd, the
As of December 22nd, the company and its affiliates held approximately 444,262 BTC, currently valued at around $43.53 billion. They acquired these coins for a total of $27.7 billion, translating to an average purchase price of $62,257 per BTC. MicroStrategy’s stock on the Nasdaq has surged by over 422% so far this year, primarily due to its successful Bitcoin strategy.
However, no specific date for the special shareholders’ meeting has been disclosed yet. The company’s next earnings report is set for February 2nd, 2025.
As per reported by Cointelegraph.com
