Author: Ana Paula Pereira, Cointelegraph; Translated by: Deng Tong, Jinse Finance.
The software company MicroStrategy is holding a special Shareholder meeting to expand its Stocks issuance plan.mergers and acquisitions.Buy more Bitcoin.
According to the proxy statement submitted to the USA Securities and Exchange Commission on December 23, the company is seeking permission to increase the number of authorized shares of Class A common stock and preferred stock to have greater flexibility to issue more shares in the future as needed.
The first amendment aims to increase the authorized Class A common stock from 0.33 billion 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.
MicroStrategy's filing on December 23, 2024. Source: Street Insider.
Behind these proposals is MicroStrategy's $21 billion plan. The plan was disclosed in October and outlines the company's goal to purchase an additional $42 billion worth of Bitcoin over the next three years. The plan includes raising $21 billion through stock sales and another $21 billion through fixed-income securities.
According to MicroStrategy's documents:
"Proposals 1 and 2 at this special meeting request an increase in the authorized shares of the company's equity to support further implementation of our $21 billion plan and future broader Capital Markets activities as well as Other corporate purposes."
The company has been regularly acquiring BTC since 2020, but has ramped up its purchases since the announcement of this plan. In December alone, it purchased 42,162 Bitcoins, worth over $4 billion at current prices.
At the end of October, MicroStrategy reported its BTC yield at 17.8%, planning to achieve an annual return of 6% to 10% during the period from 2025 to 2027. Since then, it has reportedly raised $13 billion by issuing stocks and $3 billion by issuing convertible Bonds.
"We are executing the $2.1 billion plan much faster than initially expected," the document noted.
As of December 22, the company and its subsidiaries held approximately 444,262 BTC, valued at about $43.53 billion. The total acquisition cost of these tokens was $27.7 billion, with an average purchase price of $62,257 per BTC.
MicroStrategy currently holds over 0.444 billion Bitcoin. Source: Saylor Tracker.
The company's stocks on Nasdaq have risen over 422% so far this year—mainly due to its Global Strategy for Bitcoin. The date for the special shareholder meeting has not yet been announced. The company's next earnings report is scheduled to be released on February 2, 2025.
