Self-proclaimed Bitcoin development company MicroStrategy announced that 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 proposes to increase its capital by up to 2,200%
MicroStrategy launched the '21/21 plan' in October 2024, aiming to raise $42 billion over three years, including $21 billion in equity capital and $21 billion in fixed income capital. To accelerate this goal, MicroStrategy announced a special shareholder meeting and the following proposals regarding the issuance of new shares:
Increase the authorized Class A shares 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 equity will increase from the original 500 million shares to 11.5 billion shares, an increase of up to 2,200%.
Note: Preferred Stock: Preferred stock usually has voting rights, dividends are usually fixed, and has priority in liquidation.
Revise the equity incentive plan to provide automatic equity awards to newly joined directors
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 board members.
MicroStrategy stated that granting rewards is at its discretion, but announced a maximum limit of $3 million for options and $3 million for RSUs.
Note: Restricted Stock Units (RSU): Typically, a vesting period is set at the time of granting, during which the beneficiary must continue to serve the company. Only after the vesting period is completed will RSUs convert into actual company stock.
This article MicroStrategy holds an extraordinary shareholder meeting, expecting to increase capital by up to 22 times, ensuring the implementation of the Bitcoin strategy first appeared in Chain News ABMedia.
