MicroStrategy, a prominent corporate investor in Bitcoin, has scheduled a Special Shareholder Meeting to discuss key proposals aimed at advancing its 21/21 Bitcoin Plan and enhancing its capital-raising initiatives.
In a letter from the company’s Executive Chairman, MicroStrategy outlined three important agenda items to be voted on during the upcoming virtual meeting.
Key Proposals from MicroStrategy
The first proposal involves modifying the company’s Second Restated Certificate of Incorporation to significantly increase the number of authorized Class A shares from 330 million to 10.33 billion. This increase would provide the company with greater flexibility for future capital-raising activities.
The second proposal suggests raising the number of authorized preferred shares from 5 million to 1.005 billion, which would offer the company more options for financing strategic projects.
Lastly, MicroStrategy is proposing an amendment to its 2023 Equity Incentive Plan to automatically grant equity awards to new Board directors. This adjustment aims to align their compensation with the company’s long-term Bitcoin strategy.
Since October 2024, MicroStrategy has raised over $2 billion through a combination of equity and debt offerings to further increase its Bitcoin holdings, cementing its position as a leader in corporate digital asset investment. The company believes these proposed changes will provide the necessary flexibility to adjust its financial strategies in response to market shifts, all while staying focused on its long-term goals.
Although these proposals could potentially increase shareholder value, MicroStrategy emphasized that the proposed increase in authorized shares would not lead to immediate dilution, but rather set the stage for a gradual process.
MicroStrategy’s Bitcoin Accumulation Strategy
This announcement comes shortly after MicroStrategy’s founder, Michael Saylor, revealed that between December 16 and 22, the company acquired an additional 5,262 BTC, worth approximately $561 million. With this purchase, MicroStrategy’s total Bitcoin holdings have reached 444,262 BTC, acquired for a total cost of $27.7 billion, averaging $62,257 per Bitcoin.
Notably, the most recent purchase was made at an average price of $106,662 per Bitcoin, the highest price ever paid by the company for the digital asset.
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