Key Takeaways
- MicroStrategy plans to increase authorized shares to support its Bitcoin buying strategy.
- The company's Bitcoin holdings are up to 450,000 BTC, now valued at $48.5 billion.
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MicroStrategy shareholders are expected to vote on several key proposals at a special meeting scheduled for 10 a.m. New York time on Tuesday, according to a recent report report from Bloomberg.
The main focus of the vote will be to agree to increase in Class A authorized common stock from 330 million shares to 10.3 billion shares. Shareholders will also consider increasing the number of authorized preferred shares from 5 million to 1 billion.
Bloomberg said MicroStrategy's shareholder vote is likely to easily pass the proposed measure, as co-founder and chairman Michael Saylor has substantial voting power — roughly 46% through its Class B shares.
The company also plans to raise up to $2 billion through preferred stock offerings, which would be senior in Class A shares.
The increase would advance MicroStrategy's 21/21 plan, which aims to raise $42 billion over three years through the issuance of shares and debt sales to support widespread Bitcoin purchases.
Since the announcement of the plan, MicroStrategy has collected 197,780 BTC through 10 consecutive weekly purchases, reaching almost half of its goal in more than two months. Saylor previously told Bloomberg that the company would reassess its capital allocation strategy after achieving the goal.
The upcoming meeting will also consider changes to the company's equity incentive plan, including automatic equity grants to newly appointed board members.
Following on from his latest Buy BitcoinMicroStrategy maintains $6.5 billion of equity offerings remaining under its $42 billion plan.
The Tysons, Virginia-based company currently holds approximately 450,000 BTC, worth $48.5 billion at current market prices. He has invested about $28 billion in his Bitcoin holdings at an average price of $62,691.
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