By Key Points
- MicroStrategy plans a shareholder meeting to boost Bitcoin investments.
- Proposes increasing authorized shares for its 21/21 Plan.
- Aims to purchase $42 billion worth of BTC via equity and debt.
- Holds 444,262 BTC, valued at $43.53 billion.
MicroStrategy, a software giant and a pioneer in corporate Bitcoin adoption, has outlined an ambitious new plan to expand its BTC holdings significantly.
On Dec. 23, the company filed a proxy statement with the SEC, signaling its intent to call a special shareholder meeting. This meeting aims to secure approval to increase the company’s authorized shares.
The proposal aligns with its 21/21 Plan, a long-term strategy introduced in October. This plan focuses on acquiring $42 billion worth of Bitcoin within three years. To achieve this, MicroStrategy intends to raise $21 billion through equity sales and $21 billion via fixed-income securities.
🇺🇸 MicroStrategy $MSTR voting to increase the number of authorised shares to buy more Bitcoin 🤯
“The first nation to print their own currency to buy #Bitcoin wins.” – Saylor 👀 pic.twitter.com/EC2ULEw4Ow
— Vivek⚡️ (@Vivek4real_) December 24, 2024
To move forward, the company has proposed two significant amendments:
- Class A Shares Expansion – Increasing the authorized shares from 330 million to 10.33 billion.
- Preferred Shares Increase – Expanding the authorized shares from 5 million to over 1 billion.
These changes would allow MicroStrategy to issue additional shares, ensuring greater flexibility in funding its Bitcoin acquisition strategy and other corporate initiatives.
Rapid Progress on Bitcoin Accumulation
Since unveiling the 21/21 Plan, MicroStrategy has accelerated its Bitcoin acquisitions. In December alone, the company purchased 42,162 BTC, an investment worth over $4 billion.
Currently, MicroStrategy and its subsidiaries own 444,262 BTC, which were acquired for $27.7 billion. The average purchase price for these holdings stands at $62,257 per BTC.
At current market rates, this massive reserve is valued at $43.53 billion, reflecting substantial growth in the value of its assets.
MicroStrategy has already raised $13 billion via stock issuances and $3 billion through convertible bonds to support its ambitious buying spree. This progress underscores the company’s capability to execute its plan ahead of schedule.
The company remains optimistic about its future performance. Between 2025 and 2027, MicroStrategy aims to achieve annual yields of 6% to 10% from its Bitcoin holdings.
Shareholder Support and Market Implications
MicroStrategy acknowledges that shareholder approval is crucial for the success of its 21/21 Plan. The SEC filing elaborated on the importance of increasing authorized shares, stating:
“Proposals 1 and 2 for this Special Meeting request an increase in the authorized shares of the capital stock of the Company to support further implementation of our 21/21 Plan and future capital markets activity more generally, as well as other corporate purposes.”
This strategic approach reflects the company’s long-term vision of enhancing shareholder value through bold investments in Bitcoin. With its stock up 422% year-to-date, MicroStrategy has demonstrated how a focused Bitcoin strategy can drive investor confidence and market performance.
While the date for the special shareholder meeting is yet to be announced, the next earnings report is scheduled for Feb. 2, 2025.
