MicroStrategy To Vote On Increasing Capital Stock

MicroStrategy, one of the world’s largest BTC corporate holders, has filed a preliminary notice with the SEC to hold a shareholder vote.

One of the main topics will be whether to increase the number of authorized shares. Although the exact date and time are yet to be revealed, the notice says that the meeting will go down in early 2025.

The 21/21 Plan Will be The Main Topic

The main reason why there will be a vote on increasing the number of shares is because the company wants to reach its three-year financial goal. According to the strategy, the company is looking to raise $21 billion in equity capital and $21 billion in fixed-income instruments. This strategy is referred to as the 21/21 Plan.

Michael Saylor, MicroStrategy’s chairman, stated that the proposals “reflect a new chapter” in the company’s evolution.

Shareholders will have to vote yes or no on whether to increase the number of Class A common stock to 10.33 billion shares. Currently, the company has 330 million shares. Then, shareholders will have to vote on whether to increase preferred stock shares to 1 billion (currently, the company has 5 million shares).

Non-Share Topics Will Also Be Discussed in the Meeting

MicroStrategy’s shareholders will vote on whether to provide new members of the Board of Directors with automatic equity award grants. If the number of votes doesn’t reach the required threshold, shareholders will vote yes or no on whether to adjourn the meeting.

Recently, MicroStrategy bought over 5,000 digital assets for around half a billion dollars as a way to expand its Bitcoin reserves. As such, the total BTC holdings of the company now exceed 440,000 units.

Even though MicroStrategy purchased a lot of assets, its stocks dropped on the day the news was announced. In the past month, the company had a 17.60% decrease in its share price. Nevertheless, the current market valuation of MicroStrategy is around $80 billion and since last year, its shares increased by more than 450%.