Michael Saylor’s MicroStrategy is planning to make a big move in its Bitcoin purchase plan. The company intends to raise the number of its Class A common shares from 330 million to 10.3 billion. The proposal, which is expected to be put to a vote of shareholders on January 21st, could give MicroStrategy a new method of financing its BTC strategy..
Michael Saylor’s MicroStrategy To Authorize 10.3B Shares for BTC Plans
Bloomberg has reported that MicroStrategy Inc. plans to boost the number of its Class A common shares from 330 million to 10.3 billion. This is in line with the-company’s strategy of using the funds to finance its ongoing Bitcoin purchase strategy.
Michael Saylor, co-founder and chairman of MicroStrategy, holds 47% of the company’s voting power. This strong influence is expected to support the approval of the proposal at the up coming shareholders meeting. According to the experts, the decision will help MicroStrategy to increase the proceeds from the sale of its stock and support the company’s Bitcoin strategy.
Earlier this week, MicroStrategy announced boosting its Bitcoin holdings with the acquisition of 2,530 BTC for $243 million. Consequently, this move increased its total holdings to 450,000 BTC. The company acquired Bitcoin at an average price of $95,972 per BTC. This purchase was funded using proceeds from its recent stock sales under a sales agreement, as disclosed in an SEC filing.
What the Proposal Means For The Company
If the proposal passes, MicroStrategy could rival major corporations such as Amazon and Alphabet in the volume of authorized shares. While Alphabet currently has 300 billion authorized shares, MicroStrategy’s proposed 10.3 billion shares would place it among the largest companies by authorized share count on the Nasdaq 100 Index.
Despite concerns about shareholder dilution, analysts believe investors might remain supportive due to the company’s historic returns. Since adopting its Bitcoin strategy in 2020, MicroStrategy’s shares have surged over 2,500%, with BTC prices rising nearly 800% in the same period.
According to reports, Michael Saylor’s MicroStrategy purchased $22.07 billion worth of Bitcoin in 2024, acquiring 258,320 BTC at an average price of $85,450 per coin. The company recorded an impressive BTC yield of 74.3% during the year. Saylor highlighted that Bitcoin gains translated to $14.06 billion in shareholder value creation.
Leveraging Shares to Strengthen Bitcoin Strategy
MicroStrategy plans to utilize the additional shares for private transactions, at-the-market equity sales, and convertible note settlements. The company has already raised $21 billion through share issuances under its current plan, with $6.5 billion remaining for future funding.
Saylor has stated that the company aims to “build more intelligent leverage” as part of its financing efforts. By increasing authorized shares, MicroStrategy could secure the flexibility needed to continue its Bitcoin purchasing strategy.
The shareholder vote on January 21 will determine the approval of the amendments. Alongside increasing Class A common shares. More so, the company seeks to raise its authorized preferred stock from 5 million to 1 billion.
Meanwhile, Bitcoin price has continued its bullish rally, surging 10% in the last 7 days and touching $105K. The cryptocurrency’s market cap has crossed $2.06 trillion, reflecting strong investor sentiment. Trading volume has also spiked by 20.44% to $65.9 billion, signaling increased market activity.
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