MicroStrategy, currently the largest corporate holder of Bitcoin, has announced a plan to boost its authorized shares massively and consequently put to vote in front of its shareholders its proposed increase in its Class A common stock from 330 million to 10.33 billion and its preferred stock from 5 million to 1.05 billion.
It is a component of the business’s ambitious “21/21” program, which plans to raise £29bn ($42bn) for the next three years to enhance its Bitcoin-centric operations.
The “21/21” plan outlines a dual-funding approach: $21 billion in equity capital and another $21 in fixed-income securities, including bonds, convertible bonds, and preference shares. These funds are designed to allow MicroStrategy to continue funding its Bitcoin acquisitions, further establishing it as a leading Bitcoin treasury company.
Co-founder and Executive Chairman of MicroStrategy Michael Saylor also highlighted the importance of such propositions, claiming that they indicate the company’s new stage of development as the Bitcoin Treasury Company.
“I think we will see the growth of a digital monetary ecosystem with Bitcoin at the core, serving as digital capital and the true source of economic energy for the free world.” – @NatBrunellpic.twitter.com/QmVjkv09Tl
— Michael Saylor⚡️ (@saylor) December 24, 2024
MicroStrategy Expands Board And Strengthens Bitcoin Investment Strategy
Continuing this volatile approach, MicroStrategy has enlarged its board of directors from six people to nine and invited famous professionals in cryptocurrencies. The new appointees are Brian Brooks, the former CEO of Binance.US, and Jane Dietze, a board member of Galaxy Digital. The proxy statement also outlines an equity incentive plan requiring equity awards to new board members to direct their incentives toward achieving strategic objectives.
MicroStrategy has not wavered in its Bitcoin investment strategy, which has recently purchased more Bitcoin worth 5,262 for about $561 million. This takes the total holdings to 444,262 BTC, worth over $41,6 billion at current market rates. Nevertheless, its stock plunged by 8.78 percent on Monday to close at $332.23 following expensive acquisitions of other firms.
MicroStrategy’s stock has declined slightly by 17.6% in the past month but has risen by nearly 450% in the past year. On the other hand, Ether fell by 4% on the last day and was trading at $4,196. Bitcoin experienced a slight decline of 1.6% in the same period and was trading at $93,932.
The disclosure is timely, coinciding with MicroStrategy‘s entrance into the Nasdaq 100 index, pegged for December 23, 2024. This achievement places the company among the applicant companies ranked based on market capitalizations on the NASDAQ, where investors can indirectly invest in Bitcoin via products such as the Invesco QQQ Trust (QQQ), which manages $322bn in assets.
Michael Saylor has also endorsed President-Elect Trump’s plan to make Bitcoin a store of value, particularly by creating a Bitcoin reserve. Trump has a policy known as the “Digital Assets Framework,” which seeks to promote growth in the U.S. Digital asset industry and provide the legal rights of individuals and companies in the crypto space.
We have yet to determine the date for the shareholder meeting to approve MicroStrategy’s share increase, but for now, the plan is to hold the meeting in 2025. It could dramatically bolster the company’s ability to achieve its Bitcoin-oriented aims and deepen its dominance in the cryptocurrency sector if approved.
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