Software company MicroStrategy is seeking approval for a proposal to expand its stock issuance plan by holding a special shareholders meeting, to allow for more flexibility in issuing additional stock and to support future Bitcoin purchases.
Expand stock authorization plan
According to the proxy documents submitted to the U.S. Securities and Exchange Commission (SEC) on December 23, MicroStrategy plans to fund its 21/21 plan by increasing the authorized shares of Class A common stock and preferred stock. This plan was announced in October, aiming to repurchase $42 billion worth of Bitcoin over the next three years, which includes raising $21 billion through stock sales and $21 billion through fixed-income securities.
The two amendments proposed by MicroStrategy are:
Increase in authorized Class A common stock: from the original 330 million shares to 10.33 billion shares.
Increase in authorized preferred stock: from 5 million shares to over 1 billion shares.
The purpose of this proposal is to provide the company with more flexibility to support its future capital market activities, especially to accelerate the execution of its Bitcoin purchase plan.
21/21 Plan: Further increasing Bitcoin investment
Since 2020, MicroStrategy has been ramping up its Bitcoin acquisitions and announced an ambitious 21/21 plan to invest $42 billion in purchasing more Bitcoin over the next three years. In December alone, MicroStrategy purchased 42,162 Bitcoins, worth over $4 billion at current prices.
The company stated: 'We are executing the 21/21 plan at a pace significantly faster than initially expected.'
Significant gains and stock price increase
As of December 22, MicroStrategy and its subsidiaries collectively hold approximately 444,262 Bitcoins, valued at around $43.5 billion. Since the launch of this plan, MicroStrategy has raised $13 billion through stock issuance and $3 billion through convertible bonds. The company also plans to achieve an annual yield of 6% to 10% from 2025 to 2027.
Due to the success of its Bitcoin strategy, MicroStrategy's stock has risen over 422% year-to-date.
Looking ahead
This proposal at MicroStrategy's shareholders meeting marks its determination to increase Bitcoin investment and further solidify its leadership position in the cryptocurrency space. The company is expected to release its next financial report on February 2, 2025, detailing its Bitcoin investment results and future plans.
This strong confidence in Bitcoin and ongoing capital investment may spark more institutional interest in Bitcoin and further drive the development of the cryptocurrency market.
#比特币市场波动观察 #本周微策略是否继续增持BTC？ #加密市场盘整 #比特币战略储备 #萨尔瓦多将“加速”增持BTC $BTC $ETH $BNB
