MicroStrategy Plans To Expand Equity And Bitcoin Holdings

According to ShibDaily, MicroStrategy, a business intelligence and software company, has announced a special shareholder meeting to discuss plans for expanding its equity issuance and increasing its Bitcoin holdings. On December 23, the company submitted a proxy filing to the U.S. Securities and Exchange Commission (SEC), seeking approval for a shareholder vote on several proposals. The first proposal aims to increase the authorized Class A common stock from 330 million shares to 10.33 billion shares, while the second proposal seeks to raise the authorized preferred stock from 5 million shares to over 1 billion shares. The meeting will be conducted via a live webcast, accessible only to MicroStrategy stockholders through a designated website. In October 2024, MicroStrategy introduced an ambitious three-year capital strategy known as the 21/21 Plan. This plan aims to raise $21 billion in equity capital and an additional $21 billion through fixed-income instruments, including debt, convertible notes, and preferred stock. The proposals for the special meeting are intended to support the implementation of this plan and other corporate purposes. Shareholders will also vote on a proposal to grant automatic equity awards to new members of the Board of Directors upon their appointment. Additionally, they will decide whether to approve or reject proposals to adjourn the meeting if necessary to gather more proxies. MicroStrategy has been in the spotlight recently due to its ongoing Bitcoin acquisitions. In December alone, the company purchased 42,162 BTC, valued at over $4 billion at current market prices. In late October, MicroStrategy reported a Bitcoin yield of 17.8%, with plans to achieve a more moderate annual yield of 6% to 10% from 2025 to 2027. Since then, the company has raised $13 billion through stock sales and $3 billion through convertible bonds. This aggressive Bitcoin strategy has significantly contributed to MicroStrategy's rise to the Nasdaq 100, marking a notable achievement for the firm. In 2024, the company's bold Bitcoin strategy paid off when it was added to the prestigious Nasdaq 100, with its stock surging over 422% year-to-date. This growth was driven by the company's ability to generate substantial market value, largely through its significant Bitcoin holdings, alongside strong performance in its core business of software and business intelligence.