MicroStrategy shareholders vote on proposals to promote stock issuance for Bitcoin strategy

Key Takeaways

MicroStrategy shareholders will vote to increase the authorized common stock to 10.3 billion shares.
The vote will consider changes to the company's equity incentive plan and procedural changes for board directors.

MicroStrategy shareholders will vote on key proposals to promote authorized shares and review the equity incentive plan – a strategic move that supports the company's Bitcoin strategy.

“The proposals we're asking you to consider mark a new chapter in our evolution as a Bitcoin Finance Company and our ambitious goals for the future,” said MicroStrategy co-founder and executive chairman Michael Saylor .

The vote is expected to take place at a special meeting in 2025; the exact date will be announced later, according to a recent man notice filed with the SEC.

The meeting, which will be held via webcast, will allow stockholders of record as of a date to be determined in 2025 to vote on four proposals, including a common stock increase to 10.3 billion shares from 330 million and preferred stock to 1 billion shares from 5 million.

The proposed expansion aims to support the '21/21' plan which includes raising $42 billion to fund future Bitcoin acquisitions in three years. Saylor said last week the company would reassess its capital allocation strategy once the $42 billion target is met.

Since the plan was announced, MicroStrategy has received approximately 192,042 BTC worth approximately $18 billion. This means that he has achieved approximately 42% of his intended investment goal in less than two months.

The Virginia-based company is also seeking stockholder approval to amend its equity incentive plan. If adopted, the amendment will automatically grant three new directors – Brian Brooks, Jane Dietze, and Gregg Winiarski – equity awards worth $2 million when they were first appointed to the Board.

This proposal reflects the company's strategy to attract and retain qualified leaders while continuing to focus on its Bitcoin acquisition strategy.

Shareholders also decide on a procedural step that allows a meeting to be adjourned if there are not enough votes to approve any proposals, enabling additional votes to be sought if needed.

MicroStrategy recommendations come next included in the Nasdaq-100 The index came into effect on 23 December. The move is expected to lead to more purchases from index-tracking funds, such as the popular Invesco QQQ Trust, which could increase the liquidity and visibility of MicroStrategy stock among investors.