Self-proclaimed Bitcoin development company MicroStrategy announced it will hold a special shareholder meeting for shareholders to vote on several key proposals aimed at accelerating the 21/21 plan, simplifying fundraising, and aligning board compensation with the company's Bitcoin strategy.
MicroStrategy's proposal to increase capital by up to 2,200%
MicroStrategy launched the '21/21 Plan' in October 2024, aiming to raise $42 billion in three years, including $21 billion in equity capital and $21 billion in fixed income capital. To expedite this goal, MicroStrategy announced a special shareholder meeting with the following proposals regarding the issuance of new shares:
Increase the authorized Class A stock from 330 million shares to 10.33 billion shares to support future fundraising
Increase the authorized preferred stock from 5 million shares to 1.005 billion shares to expand financing options
If both proposals are approved, MicroStrategy's capital will increase from the original 500 million shares to 11.5 billion shares, a staggering increase of 2,200%.
Note: Preferred Stock: Preferred stock typically has voting rights, dividends are usually fixed, and it has priority in liquidation.
Amend the equity incentive plan to provide automatic equity awards for new board members
Additionally, MicroStrategy recently welcomed three new board members—Brian Brooks, Jane Dietze, and Gregg Winiarski. These directors have extensive experience and expertise in digital assets, capital markets, and regulatory affairs. Proposal 3 of this special meeting will amend the 2023 equity incentive plan to provide automatic equity awards for newly joined directors.
MicroStrategy stated that the granting of awards is at its discretion, but has announced a cap of up to $3 million for options and up to $3 million for RSUs.
Note: Restricted Stock Units (RSU): Typically, a vesting period is set at the time of grant, during which the beneficiary must continue to serve the company. Only after the vesting period ends will the RSUs convert into actual company shares.
This article MicroStrategy holds an extraordinary shareholder meeting, expecting to increase its capital by up to 22 times, ensuring the realization of its Bitcoin strategy first appeared on Chain News ABMedia.
