MicroStrategy has announced a Special Meeting of Shareholders to discuss strategic proposals aimed at strengthening its Bitcoin-focused initiatives under its ambitious 21/21 Plan. The meeting, which will take place virtually, includes pivotal agenda items designed to enhance the company’s capital-raising capabilities and align its operations with its long-term digital asset strategy.
Key Proposals on the Agenda
In a letter from Executive Chairman Michael Saylor, MicroStrategy outlined three primary proposals for the meeting. The company is seeking to amend its Second Restated Certificate of Incorporation to increase authorized Class A shares from 330 million to 10.33 billion. This dramatic expansion would provide the flexibility needed to raise additional capital for future initiatives, including Bitcoin acquisitions.
MicroStrategy aims to increase authorized preferred shares from 5 million to 1.005 billion. This move would broaden the company’s financing options, allowing it to pursue strategic initiatives with greater agility.
The company also plans to amend its 2023 Equity Incentive Plan. The proposed change would grant automatic equity awards to new directors joining the Board, ensuring their compensation aligns with MicroStrategy’s long-term Bitcoin vision.
MicroStrategy Ramping Up Bitcoin Investments
Since October 2024, MicroStrategy has raised over $2 billion through equity and debt instruments to bolster its Bitcoin holdings, solidifying its position as a corporate leader in digital asset investment. The proposed amendments aim to give the company the flexibility to navigate evolving market conditions while maintaining its commitment to Bitcoin.
The company assured shareholders that the increase in authorized shares would not lead to immediate dilution but would instead provide a framework for phased implementation. MicroStrategy emphasized the potential for enhanced shareholder value through these measures, as they support its continued investment in Bitcoin and strategic growth.
The announcement comes on the heels of a significant Bitcoin purchase by MicroStrategy. Between December 16 and 22, the firm acquired an additional 5,262 BTC, valued at approximately $561 million. This latest buy brings its total holdings to 444,262 BTC, purchased at an aggregate cost of $27.7 billion, or an average of $62,257 per coin.
Interestingly, the recent purchase was made at an average price of $106,662 per Bitcoin, marking the highest price the company has ever paid per coin. This move underscores MicroStrategy’s unrelenting commitment to its Bitcoin-focused strategy despite market fluctuations.
