MicroStrategy, noted for its aggressive Bitcoin investment approach, has called a special shareholder meeting to seek approval to increase its equity issuance capabilities. This action is part of the company’s 21/21 Plan, a three-year drive to acquire $42 billion in Bitcoin.
The proxy filing to the Securities and Exchange Commission (SEC) on December 23 outlines two significant revisions. The first proposal is to increase the authorized Class A common stock from 330 million to 10.33 billion. The second intends to increase the permitted preferred stock from 5 million to over 1 billion shares. The company intends these improvements to enhance its flexibility in obtaining capital through equity sales and fixed-income securities.
Under the 21/21 Plan, MicroStrategy intends to fund its Bitcoin purchases by dividing the $42 billion target between $21 billion from equity sales and $21 billion from loan instruments. The business has already intensified its Bitcoin purchase operations, purchasing 42,162 BTC in December alone, worth more than $4 billion at today’s market levels.
As of December 22, MicroStrategy and its subsidiaries owned about 444,262 BTC, totaling $27.7 billion, with an average purchase price of $62,257 per Bitcoin. The company reports a Bitcoin yield of 17.8% and expects an annual yield of 6% to 10% in the next years.
MicroStrategy’s daring strategy has had a substantial impact on its stock performance, with Nasdaq-listed shares up more than 420% by 2024. The company’s Bitcoin-focused operations have solidified its status as the world’s largest corporate Bitcoin holder, contributing to this rise.
The date of the shareholder meeting has not been announced, although the company’s next earnings report is set for February 2, 2025. As MicroStrategy continues to push the frontiers of corporate cryptocurrency investments, it remains a critical participant in determining the future of digital asset usage in business.