MicroStrategy seeks shareholder support to expand Bitcoin investment

Retail investors worldwide are approaching 2025 with a clear focus on financial growth and diversification. In the UAE, a survey by trading platform eToro revealed a growing interest in cryptocurrencies, with 37% of respondents planning to expand their crypto investments alongside traditional assets such as stocks and real estate. Meanwhile, software giant MicroStrategy continues to double down on its Bitcoin strategy, seeking shareholder approval to significantly expand its equity issuance plan to aim to finance the acquisition of Bitcoin $ 42 billion over the next three years.

MicroStrategy seeks shareholder approval to expand Equity Plan and accelerate Bitcoin purchases

Software company MicroStrategy is making a bold move to cement its position as a leading institutional Bitcoin investor. The company announced a special shareholder meeting to request approval for an expanded equity distribution plan, which will allow it to buy more Bitcoin. This development comes as part of his ambitious “21/21 Plan”, which aims to significantly increase his Bitcoin holdings over the next three years.

In proxy 23 December to file with the US Securities and Exchange Commission (SEC), MicroStrategy outlined proposals to increase the number of authorized shares for both Class A common stock and preferred stock. If passed, these changes will give the company more flexibility to issue shares and raise capital.

• Class A Common Stock: The proposal aims to increase authorized shares from 330 million to 10.33 billion.

• Preferred stock: The proposal aims to increase authorized shares from 5 million to more than 1 billion.

According to the filing, these changes are essential to support the company's strategic initiatives, particularly its 21/21 Plan, which was released in October.

The 21/21 Plan

MicroStrategy's 21/21 Plan outlines an aggressive goal: to buy an additional $42 billion worth of Bitcoin by 2027. The funding strategy is equally ambitious, including $21 billion raised through equity sales and another $21 billion through fixed income securities.

The company said in its filing, “Proposals 1 and 2 for this Special Meeting call for an increase in the authorized shares of the Company's capital stock to support the further implementation of our 21/21 Plan and capital markets operations in the period to coming in general as well as. other physical causes.”

MicroStrategy's focus on Bitcoin is not new; the company has been a regular customer since 2020. However, the pace of construction has increased since the 21/21 Plan was announced. In December alone, the company received 42,162 Bitcoins, worth more than $4 billion at current market prices.

This increase in purchases has strengthened Bitcoin MicroStrategy hold to a staggering 444,262 BTC on December 22nd. The total cost of these coins is $27.7 billion, with an average purchase price of $62,257 per Bitcoin. At current market levels, the total value of the company's Bitcoin holdings is approximately $43.53 billion.

MicroStrategy has already raised substantial funds for acquiring Bitcoin:

• Equity Sale: $13 billion raised through stock issuance.

• Debt Concession: $3 billion raised through convertible bonds.

The company has also reported a strong return on its Bitcoin holdings, achieving a BTC return of 17.8% by the end of October. It aims to maintain an annual return of 6% to 10% between 2025 and 2027.

Aggressive MicroStrategy Bitcoin strategy has benefited stock performance. Shares on the Nasdaq have risen more than 422% year to date, largely driven by investor confidence in its cryptocurrency-focused strategy.

The date of the special shareholder meeting has not been announced, but the outcome will play an important role in shaping the future of the company. If shareholders approve the proposals, MicroStrategy will have the resources to further accelerate its Bitcoin gains. The company's next earnings report, scheduled for February 2, 2025, will likely shed light on its progress and the impact of its Bitcoin holdings on financial performance.

Betting heavily on Bitcoin

MicroStrategy CEO Michael Saylor has consistently championed Bitcoin as a transformative asset. The company's latest moves reflect its attempt to integrate Bitcoin into its corporate strategy. With over $43 billion worth of Bitcoin already on balance and plans to acquire billions more, MicroStrategy remains at the forefront of institutional Bitcoin adoption.

Although the approach has received praise from cryptocurrency enthusiasts, it has also raised questions about the risks associated with such an aggressive investment strategy. As the company continues to double down Bitcoinall eyes will be on how Plan 21/21 will be implemented and the impact it will have on shareholder value in the years to come.

Study Reveals UAE Retail Investors Plan to Expand Crypto Investments in 2025

In other news, a recent study commissioned by trading platform eToro has shed light on the financial aspirations of retail investors in the United Arab Emirates (UAE) for 2025, revealing a strong interest in increasing investments in cryptocurrencies. The survey, which involved 1,000 participants, highlighted a proactive approach to wealth building and self-development among UAE residents.

According to the survey, 37% of respondents expressed plans to increase their crypto asset investments in the coming year. This aligns with broader financial goals shared by 54% of participants, who named achieving financial stability and growth as their top New Year's resolution. These goals ranged from investing in traditional assets such as stocks, bonds, and commodities to diversifying a portfolio with cryptocurrencies.

Although cryptocurrencies received a lot of attention, traditional asset classes remained a priority for UAE investors:

• 40% of participants aim to increase their knowledge of stocks, bonds, and commodities.

• 38% plan to invest in real estate, indicating a balanced approach to asset diversification.

Participants also shared their strategies for achieving their financial aspirations. Specifically, 51% of respondents said they would increase their overall savings or investment contributions. Other approaches included:

• Budget and Expense Management: 41% plan to comprehensively track their expenses and budget to better manage their finances.

• Lifestyle changes: 38% aim to adopt more frugal and conscious lifestyles, while 28% plan to cut back on shopping and eating out.

In addition to savings and budgeting, many UAE investors are looking to increase their earnings through other means:

• Side Hustles: 32% of respondents plan to launch side businesses to generate additional income.

• Career Changes: 28% are considering career moves to get higher salaries.

This entrepreneurial spirit aligns with the wider economic landscape of the UAE, where innovation and flexibility are highly valued.

In a press release, George Naddaf, regional manager of eToro, praised the proactive mindset of UAE investors, describing their intentions as a combination of financial security and personal growth. Naddaf said, “The 2025 resolutions reflect a proactive approach to not only financial security but also a desire for self-development and flexibility.

He also highlighted the progressive culture of the UAE, noting that the country continues to drive financial stability and personal development.

Beyond financial goals, the survey revealed that UAE residents are equally focused on personal development:

• 41% of respondents prioritize personal growth, including increasing skills, education, and professional advancement.

• 34% put health and wellness at the top of their resolutions, with many planning to focus on fitness, mental health, and stronger social or family connections.

The UAE's Financial and Personal Growth Mindset

The survey results reveal a unique combination of financial ambition and overall self-improvement among UAE residents. The growing interest in crypto investments sheds light on the country's openness to innovative financial strategies, while promises for health and personal development suggest a balanced lifestyle.

As 2025 approaches, UAE retail investors are setting the stage for a year of growth and stability. Whether through larger investments in cryptocurrencies, real estate, or traditional asset classes, or through personal and professional development, their goals reflect a positive and flexible outlook.

The UAE's commitment to innovation and financial stability continues to position it as a leader in global investment trends, with its residents at the forefront of these developments.