Key Takeaways
- MicroStrategy seeks approval to expand stock issuance for Bitcoin.
- The 21/21 Plan aims to purchase $42 billion worth of Bitcoin.
- MicroStrategy currently owns 444,262 BTC worth $43.53 billion.
MicroStrategy has called a special shareholder meeting to gain approval for expanding its stock issuance as part of its 21/21 Plan, aimed at significantly increasing its Bitcoin holdings.
According to a Dec. 23 SEC filing, the company proposes amendments to its authorized shares.
The first amendment would increase Class A common stock authorization from 330 million shares to 10.33 billion, while the second raises preferred stock from 5 million shares to over 1 billion.
This move provides flexibility for future equity sales.
The 21/21 plan details
The 21/21 Plan, announced in October, sets a target of acquiring $42 billion worth of Bitcoin over three years.
This would be funded by $21 billion through equity sales and $21 billion via fixed-income securities.
The filing stated:
Proposals 1 and 2 for this Special Meeting request an increase in the authorized shares of the capital stock… to support further implementation of our 21/21 Plan
Recent Bitcoin acquisitions
The company has accelerated Bitcoin acquisitions since the plan’s unveiling, purchasing 42,162 BTC in December alone, valued at over $4 billion.
As of Dec. 22, MicroStrategy and its subsidiaries own 444,262 BTC, purchased at an average price of $62,257 per coin.
Stock performance
MicroStrategy’s Nasdaq stock has surged 422% year-to-date, driven by its Bitcoin-centric strategy.
While the special meeting’s date has not been disclosed, the company’s next earnings report is set for Feb. 2, 2025.
