Key Points
- MicroStrategy Inc is planning to expand its Bitcoin portfolio and has called for a special shareholders meeting.
- The company has proposed several strategies, including increasing Class A shares and expanding preferred shares.
MicroStrategy Inc (NASDAQ: MSTR) intends to continue its aggressive Bitcoin investment strategy.
The company has called for a special shareholder meeting to discuss its future plans.
The meeting will focus on proposals aimed at raising capital to expand its Bitcoin portfolio under the ambitious 21/21 plan.
MicroStrategy’s Bitcoin Investment Strategy
The company, led by Executive Chairman Michael Saylor, is recognized as a leader in Bitcoin investment strategies.
The crypto community is still reacting to MicroStrategy’s recent $561 million Bitcoin purchase.
However, it seems the company is not done with its plan to increase its Bitcoin reserves.
The special meeting has been called to allow shareholders to vote on three proposals aimed at achieving its goals.
The first proposal is to increase Class A shares, raising the number of authorized Class A shares from 330 million to 10.33 billion.
This move will provide the company with more flexibility and ease in raising capital in the future.
The firm also proposes expanding preferred shares from 5 million to 1.005 billion, which is expected to open up more financing opportunities.
Lastly, there is a proposal to amend the 2023 Equity Incentive Plan, which includes automatic equity awards for newly appointed directors.
This ensures that the company maintains its primary focus on Bitcoin.
Bitcoin Strategy Impacts Growth
MicroStrategy’s Bitcoin strategy has significantly impacted the company’s growth.
The company’s valuation has grown to $82 billion, an 80x growth since 2020, due to its Bitcoin accumulation.
Over the last four years, the company has acquired no less than 439,000 Bitcoins, worth around $42 billion at current rates.
Despite the impressive growth, MicroStrategy has faced challenges recently.
Its stock, listed under the ticker MSTR, is 30% down from its November ATH.
However, this decline coincides with the broader cryptocurrency market’s decline, with Bitcoin dropping by 2% in the last 24 hours to $90,000 after recently hitting an all-time high of $108,000.
Even in this situation, Michael Saylor remains confident in the company’s Bitcoin-focused approach.
He has even suggested that the US adopt a Bitcoin reserve to manage its $36 trillion national debt.
