MicroStrategy, the largest corporate holder of Bitcoin, has announced a proposal to significantly increase its authorized shares to fuel its Bitcoin-centric growth strategy. The company aims to solidify its position as a leading Bitcoin treasury firm with a bold new financial plan.
Expanding Share Authorization
In a proxy statement filed with the Securities and Exchange Commission (SEC), MicroStrategy has sought shareholder approval to raise its authorized Class A common shares from 330 million to 10.33 billion and its preferred shares from 5 million to 1.005 billion. This move is part of the company’s ambitious “21/21” plan—a three-year strategy targeting $42 billion in capital to fund future Bitcoin acquisitions.
$42 Billion Funding Plan
Under this plan, MicroStrategy aims to raise $21 billion through equity capital and another $21 billion via fixed-income instruments, including debt, convertible notes, and preferred stock. These funds are designed to support the company’s continued Bitcoin purchases and advance its position as a major Bitcoin holder.
Strengthening Leadership and Strategy
The proxy statement also introduces a new equity incentive plan to attract top-tier talent. As part of this effort, MicroStrategy has expanded its board of directors from six to nine members, adding Brian Brooks, Jane Dietze, and Gregg Winiarski. Brooks, formerly the CEO of Binance.US, and Dietze, a board member at Galaxy Digital, bring extensive experience in cryptocurrency and blockchain technologies.
“These proposals represent a new chapter in our evolution as a Bitcoin Treasury Company and highlight our ambitious goals for the future,” said Michael Saylor, co-founder and executive chairman of MicroStrategy.
Growing Bitcoin Holdings
Since declaring Bitcoin as its primary treasury asset in 2020, MicroStrategy has amassed an impressive portfolio. Earlier this week, the company announced the acquisition of 5,262 Bitcoin for $561 million, increasing its total holdings to 444,262 BTC, worth over $41.6 billion.
Despite these achievements, MicroStrategy’s stock fell 8.78% on Monday to close at $332.23. The stock has seen a 17.6% decline over the past month but boasts an extraordinary 450% growth over the past year. Meanwhile, Bitcoin’s price slipped 1.6% in the last 24 hours to $93,932.
Nasdaq 100 Inclusion
The announcement coincides with MicroStrategy’s upcoming inclusion in the Nasdaq 100 index, effective December 23, 2024. This milestone will place the company among the 100 largest firms on the Nasdaq by market capitalization. Investors holding the Invesco QQQ Trust (QQQ), an ETF with $322 billion in assets under management, will gain indirect exposure to Bitcoin through MicroStrategy.
Support for Bitcoin Policy
Michael Saylor has also voiced strong support for President-elect Donald Trump’s proposal to establish a strategic Bitcoin reserve. Detailed in the recently published “Digital Assets Framework,” the policy outlines a vision for the U.S. to lead the digital asset industry by creating clear compliance standards and defining rights for crypto asset holders.
Shareholder Vote in 2025
The shareholder vote on the proposed share increase is expected to take place in 2025. If approved, the move will mark a significant step in MicroStrategy’s efforts to cement its role as a major player in the Bitcoin ecosystem.
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