MicroStrategy, the software company known for its aggressive Bitcoin strategy, has called a special shareholder meeting to expand its equity-issuance plan. The goal: raise more funds to buy additional Bitcoin as part of its ambitious “21/21 Plan.”
Proposed Changes to Stock Authorization
In a Dec. 23 proxy filing with the Securities and Exchange Commission (SEC), MicroStrategy outlined two proposals to increase its stock authorization:
- Class A Common Stock: Expand from 330 million authorized shares to 10.33 billion shares.
- Preferred Stock: Raise the cap from 5 million shares to over 1 billion shares.
These amendments would provide MicroStrategy with the flexibility to issue more shares to raise capital for Bitcoin purchases and other corporate initiatives.
What is the 21/21 Plan?
The 21/21 Plan, disclosed in October, outlines MicroStrategy’s goal to acquire $42 billion worth of Bitcoin over the next three years. The company plans to raise $21 billion through equity sales and an additional $21 billion via fixed-income securities.
The filing states:
“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.”
Aggressive Bitcoin Accumulation
MicroStrategy has been purchasing Bitcoin since 2020 but accelerated its efforts after announcing the 21/21 Plan. In December alone, the company acquired 42,162 BTC, worth over $4 billion at current market prices.
By Dec. 22, MicroStrategy and its subsidiaries collectively owned approximately 444,262 BTC, valued at $43.53 billion. These coins were acquired at an average price of $62,257 per Bitcoin, with a total investment of $27.7 billion.
The company’s filing noted that it is progressing faster than anticipated, having raised $13 billion through stock issuances and $3 billion through convertible bonds since October.
Bitcoin Yield and Stock Performance
At the end of October, MicroStrategy reported a Bitcoin yield of 17.8%. It aims to achieve an annual yield of 6% to 10% between 2025 and 2027.
The company’s aggressive Bitcoin strategy has significantly boosted its stock performance. MicroStrategy’s shares on Nasdaq are up 422% year-to-date, reflecting investor confidence in its Bitcoin-focused approach.
The date for the special shareholder meeting has not yet been disclosed. However, the company’s next earnings report is scheduled for Feb. 2, 2025.
