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.”
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.