Author: Ana Paula Pereira, Cointelegraph; Translated by: Deng Tong, Golden Finance
The software company MicroStrategy is convening a special shareholder meeting to expand its stock issuance plan and purchase more Bitcoin.
According to proxy documents submitted to the U.S. Securities and Exchange Commission on December 23, the company is seeking permission to increase the authorized number of Class A common stock and preferred stock shares to have greater flexibility in issuing 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.
Files submitted by MicroStrategy on December 23, 2024. Source: Street Insider
Behind these proposals is MicroStrategy's $21 billion plan. This plan was disclosed in October and outlines the company's goal to purchase an additional $42 billion worth of Bitcoin over the next three years. The plan includes raising $21 billion through stock sales and another $21 billion through fixed-income securities.
According to MicroStrategy's documents:
"Proposals 1 and 2 of this special meeting request an increase in the authorized shares of the company's equity to support further implementation of our $21 billion plan, broader capital market activities in the future, and other corporate purposes."
The company has been regularly acquiring BTC since 2020, but has increased its purchasing pace since the announcement of the plan. In December alone, it purchased 42,162 Bitcoins, worth over $4 billion at current prices.
By the end of October, MicroStrategy reported a BTC yield of 17.8% and plans to achieve an annual yield of 6% to 10% from 2025 to 2027. Since then, it has reportedly raised $13 billion through stock issuance and $3 billion through convertible bonds.
"We are executing the $21 billion plan at a much faster pace than initially expected," the document noted.
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 shareholder meeting has not yet been announced. The company's next earnings report is scheduled for February 2, 2025.
