MicroStrategy Inc. (NASDAQ:MSTR) announced a special shareholder meeting Monday to vote on proposals to support its ambitious $42 billion Bitcoin (CRYPTO: BTC) purchase plan.

What happened: In a 14A filing shared with the SEC, executive chairman Michael Saylor proposed increasing the company's authorized Class A shares from 330 million currently to 10.33 billion to facilitate future capital raising.

Additionally, he recommended increasing the number of authorized shares of preferred stock from 5 million to 1.005 billion.

Preferred stocks usually offer fixed dividends and rank higher than common stocks during asset liquidation.

Saylor said that the two proposals would "support further implementation" of the 21/21 plan — a capital-raising initiative that aims to raise $21 billion through equity financing and $21 billion through fixed-income securities to purchase Bitcoin.

The MicroStrategy founder added that if implemented, the proposals would give the company "flexibility" to raise capital in a manner that is most advantageous under the prevailing market conditions.

Why It Matters: MicroStrategy has been on a Bitcoin buying spree, with the company's stockpile growing to 444,262 BTC, worth over $27 billion, after a fresh purchase of 5,262 BTC on Monday.

The playbook has become one of the hottest topics in capital markets in 2024, drawing praise and criticism in equal proportions.

Meanwhile, MicroStrategy investors have been laughing all the way to the bank, with the stock up about 380% year-to-date, outperforming the "Mag 7" businesses.

Price Action: At the time of writing, Bitcoin was exchanging hands at $94,216.84, down 1.16% in the last 24 hours, according to data from Benzinga Pro.

Shares of MicroStrategy plummeted 8.78% to $332.23 during Monday's regular session but were up 1.35% in pre-market trading.

The stock has a consensus price target of $449.5 based on the ratings of 12 analysts, with an average price target of $546.67 between Bernstein, TD Cowen, and Barclays.