MicroStrategy, the business intelligence firm that bet big on bitcoin, is back in business.
The company is calling a special meeting of shareholders to discuss plans that would increase its ability to buy more bitcoin. With a goal of buying $42 billion in bitcoin over the next three years, MicroStrategy is investing entirely in bitcoin.
At the heart of MicroStrategy’s plans is its “21/21 Plan,” which will raise $21 billion in equity and $21 billion in fixed-income securities. This will fund the company’s bitcoin buying spree.
In order to accelerate Plan 21/21, MicroStrategy is proposing to significantly increase its authorized stock. The company wants to increase its Class A common stock from 330 million shares to 10.33 billion shares. And increase its authorized preferred stock from 5 million shares to more than 1 billion shares.
This initiative would effectively result in a staggering 97% dilution of the stock, but it would give MicroStrategy more flexibility to raise capital in the future.
