Author: Ana Paula Pereira, Cointelegraph; Translated by: Deng Tong, Jinse Finance
Software company MicroStrategy is holding a special shareholders meeting to expand its stock issuance plan and purchase more Bitcoin.
According to the proxy statement submitted to the U.S. Securities and Exchange Commission on December 23, the company is seeking permission to increase the number of authorized shares of Class A common stock and preferred stock to have greater flexibility to issue more shares in the future as needed.
The first amendment aims to increase the authorized Class A common stock from 330 million shares to 10.33 billion shares, while the second amendment aims to increase the authorized preferred stock from 5 million shares to over 1 billion shares.
Documents submitted by MicroStrategy on December 23, 2024. Source: Street Insider
The proposals are backed by MicroStrategy's $21 billion plan. This plan was disclosed in October and outlines the company's goal of purchasing an additional $42 billion worth of Bitcoin over the next three years. The plan includes raising $21 billion through stock sales and an additional $21 billion through fixed-income securities.
According to MicroStrategy's filings:
The proposals 1 and 2 at this special meeting call for an increase in the authorized shares of the company's capital stock to support further implementation of our $21 billion plan and future broader capital market activities and other corporate purposes.
The company has been regularly acquiring BTC since 2020, but has intensified its purchases since this plan was announced. In December alone, it purchased 42,162 bitcoins, worth over $4 billion at current prices.
By the end of October, MicroStrategy reported a BTC return of 17.8% and plans to achieve an annual return of 6% to 10% from 2025 to 2027. Since then, it has reportedly raised $13 billion through stock issuance and $3 billion through convertible bond issuance.
The documents indicate, "We are executing the $21 billion plan much faster than initially expected."
As of December 22, the company and its subsidiaries hold approximately 444,262 BTC, valued at about $43.53 billion. The total acquisition cost of these tokens is $27.7 billion, with an average purchase price of $62,257 per BTC.
MicroStrategy currently holds over 444 million BTC. Source: Saylor Tracker
The company's stock on Nasdaq has risen over 422% this year, primarily due to its Bitcoin strategy. The date for the special shareholders meeting has yet to be announced. The company's next earnings report is scheduled for February 2, 2025.
