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MicroStrategy Sets Jan 21 Vote on 10B Share Authorization for More Bitcoin Buys
01/11/2025 02:56
MicroStrategy seeks shareholder approval to increase authorized shares, aiming to expand its Bitcoin holdings through new funding.
Key Notes
- The proposed amendment would increase Class A common stock from 330M to 10.3B shares, marking a strategic move to strengthen Bitcoin holdings. Implementation aligns with MicroStrategy's 21/21 Plan launched in October 2024, designed to facilitate broader capital market activities. Shareholders will simultaneously vote on preferred stock expansion from 5M to 1B shares, with current share values at $331.
Leading enterprise software firm MicroStrategy Inc. (NASDAQ: MSTR) and its shareholders are set to deliberate on the possible increase of their authorized shares to continue expanding its Bitcoin BTC $95 307 24h volatility: 3.4% Market cap: $1.89 T Vol. 24h: $66.44 B treasury.
In Dec 2024, the company issued a preliminary notice to the SEC, disclosing plans to hold a special meeting with its shareholders where they will be asked to vote on proposed amendments to the company’s financial operations.
While it had earlier remained silent on the date of the meeting, the company just announced it will hold it on January 21. However, shareholders will be offered voting privileges on the proposed plan a day prior, Jan 20.
MicroStrategy to Sell More Shares for More Bitcoin
While MicroStrategy has already earned its place as the most significant corporate holder of Bitcoin, the company is looking to further strengthen its position by proposing a new funding mechanism to help bolster its Bitcoin acquisition strategy.
According to its preliminary filings with the SEC, MicroStrategy has offered to increase the number of authorized shares of class A common stock from 330,000,000 to 10,330,000,000. While the voting has yet to take place, and it is still uncertain if the act will take effect, the move has generated controversy, triggering speculations on its impact on $MSTR’s potential market performance.
At the meeting, shareholders will also vote their approval or rejection on whether the company should increase the number of authorized shares of preferred stock from 5,000,000 shares to 1,005,000,000 shares. If most votes approve these proposals, the company can sell more shares, valued at $331 as of writing time, to generate additional revenue to fund its Bitcoin reserve.
The company emphasized that it is proposing an increase in the authorized shares of its capital stock to support further implementation of the 21/21 Plan it initiated in October 2024. The plan aims to help the company acquire more Bitcoin. The proposals will also foster future capital markets activity more generally and serve other corporate purposes.
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