MicroStrategy calls shareholders meeting to fund more Bitcoin purchases

Software company MicroStrategy is calling a special shareholder meeting to expand its equity-issuance plan and purchase more Bitcoin (BTC). 

According to a Dec. 23 proxy filing with the Securities and Exchange Commission, the company is seeking permission to increase the number of authorized shares for both Class A common stock and preferred stock, giving it more flexibility to issue additional shares as needed in the future.

The first amendment seeks to raise the authorized Class A common stock from 330 million shares to 10.33 billion shares, while the second amendment aims to increase the authorized preferred stock from 5 million shares to over 1 billion shares.

Behind the proposals is MicroStrategy’s 21/21 Plan. Disclosed in October, the plan outlined the company’s goal of purchasing an additional $42 billion worth of Bitcoin over the next three years. The plan involves raising $21 billion through equity sales and an additional $21 billion via fixed-income securities.

According to MicroStrategy’s filing:

“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.” 

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The company has been acquiring BTC regularly since 2020 but has intensified purchases since the plan was announced. During December alone, it bought 42,162 Bitcoin, worth over $4 billion at current prices. 

At the end of October, MicroStrategy reported that its BTC yield was at 17.8%, with plans to achieve an annual yield of 6% to 10% between 2025 and 2027. Since then, it has reportedly raised $13 billion through stock issuances and $3 billion through convertible bond offerings.

“We have been executing on our 21/21 Plan significantly faster than originally anticipated,” notes the filing. 

As of Dec. 22, the company and its subsidiaries collectively owned approximately 444,262 BTC, worth around $43.53 billion. The coins were acquired for a total of $27.7 billion, resulting in an average purchase price of $62,257 per BTC.

The company’s stock on the Nasdaq is up over 422% year-to-date — largely attributed to its Bitcoin strategy. The date of the special shareholder meeting was not made public. Its next earnings report is scheduled for Feb. 2, 2025. 

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