MicroStrategy proposes a 2,200% share increase, boosting Class A and preferred shares to fund its $42 billion Bitcoin strategy.
The “21/21 Plan” aims to raise $42 billion through equity and fixed-income capital, doubling down on Bitcoin as a reserve asset.
Board compensation amendments align new members with MicroStrategy’s Bitcoin vision, introducing $3 million caps for stock options and RSUs.
MicroStrategy has announced plans to hold a special shareholder meeting, focusing on significant proposals to strengthen its Bitcoin acquisition strategy. A core aspect of this meeting is the proposed increase in share authorization. The plan seeks to raise authorized Class A shares from 330 million to 10.33 billion and authorized preferred shares from 5 million to 1.005 billion. This marks a substantial 2,200% increase in total shares, expanding the company’s ability to secure funding through equity and alternative financial instruments.
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Aligning Board Compensation with Strategy
Additionally, the company aims to align director compensation with its Bitcoin-centric focus by amending the 2023 equity incentive plan. The proposed revisions will automatically grant equity awards to new board members, capped at $3 million each for stock options and restricted stock units (RSUs). The RSUs are structured to vest over time, ensuring sustained alignment between the company’s long-term goals and board member interests.
Central to these proposals is MicroStrategy’s ambitious “21/21 Plan.” This strategy targets raising $21 billion through equity and $21 billion through fixed-income capital over three years. The funds will be directed toward expanding Bitcoin holdings, which the company considers a key financial reserve asset. With over 444,000 BTC already acquired since 2020, the company’s holdings are now valued at approximately $42 billion, showcasing the significant scale of its commitment to Bitcoin.
Mixed Reactions from the Community
The proposals have sparked diverse reactions within the cryptocurrency community. Supporters view the initiative as a testament to MicroStrategy’s confidence in Bitcoin’s long-term potential. However, concerns about potential shareholder dilution and the extended timeline required for the plan’s full implementation have led to cautious sentiment among some stakeholders.
The outcome of the shareholder meeting will be pivotal for MicroStrategy’s bold strategy to expand its Bitcoin reserves. If approved, these measures will reinforce the company’s position as a leader in Bitcoin adoption, reshaping its financial approach for years to come.
