Software company MicroStrategy is calling a special shareholder meeting to expand its plan for stock issuance and additional Bitcoin (BTC) purchases.
According to the proxy statement on December 23 to the U.S. Securities and Exchange Commission, the company is seeking permission to increase the number of Class A common shares and preferred shares, allowing for greater flexibility in issuing additional shares as needed in the future.
The first amendment aims to increase the number of Class A common shares from 330 million to 10.33 billion shares, while the second amendment targets increasing preferred shares from 5 million to over 1 billion shares.
MicroStrategy's announcement on December 23, 2024. Source: Street Insider
Behind these proposals is MicroStrategy's 21/21 Plan. This plan, revealed in October, outlined the company's goal to purchase an additional $42 billion in Bitcoin over the next three years. The plan includes raising $21 billion through stock issuance and another $21 billion through fixed-income securities.
According to MicroStrategy's filings:
"Proposals 1 and 2 for this Special Meeting require an increase in the number of shares authorized by the company to support the further implementation of the 21/21 Plan and future capital market activities in general as well as other business purposes."
The company has been continuously buying BTC since 2020 but has ramped up purchases after the plan was announced. In December alone, they bought 42,162 Bitcoin, worth over $4 billion at current prices.
By the end of October, MicroStrategy reported that the yield from their BTC reached 17.8%, with plans to achieve an annual yield of 6% to 10% from 2025 to 2027. Since then, they have raised $13 billion through stock issuance and $3 billion through convertible bonds.
"We have executed the 21/21 Plan more quickly than initially expected," the filing noted.
As of December 22, the company and its subsidiaries held approximately 444,262 BTC, valued at about $43.53 billion. These coins were purchased for a total of $27.7 billion, averaging $62,257 per BTC.
See also: Bhutan government liquidates $40 million in Bitcoin
Currently, MicroStrategy holds over 444 million BTC. Source: Saylor Tracker
The company's stock on Nasdaq has risen over 422% year-to-date – largely thanks to their Bitcoin strategy. The date of the special shareholder meeting has not yet been announced. Their next earnings report is expected to take place on February 2, 2025.
