Key Points
- MicroStrategy Inc. plans to increase authorized shares to boost its Bitcoin treasury.
- A special meeting for shareholders to vote on the proposal is set for January 21.
MicroStrategy Inc., a prominent enterprise software firm, is planning a significant move to enhance its Bitcoin holdings. The company and its shareholders will consider increasing the number of authorized shares.
In December 2024, MicroStrategy notified the SEC of its intent to hold a special meeting with shareholders. The purpose of the meeting is to vote on proposed changes to the company’s financial operations.
Meeting Date and Agenda
The company had previously not disclosed the meeting date. However, it has now been confirmed that the meeting will take place on January 21. Shareholders will be granted voting rights on the proposed plan on January 20, a day before the meeting.
MicroStrategy, already a significant corporate holder of Bitcoin, is looking to solidify its position further. The company is proposing a new funding mechanism to support its Bitcoin acquisition strategy.
Proposed Increase in Shares
According to preliminary filings with the SEC, MicroStrategy has proposed to increase the number of authorized shares of class A common stock from 330,000,000 to 10,330,000,000. This move, although not yet voted on and uncertain of implementation, has stirred controversy and speculation about its potential impact on the market performance of MicroStrategy.
At the meeting, shareholders will vote 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 the majority of votes approve these proposals, the company can sell more shares, currently valued at $331 per share, to generate additional revenue for its Bitcoin reserve.
The company has stressed that the proposed increase in authorized shares is in line with the further implementation of the 21/21 Plan initiated in October 2024. This plan is designed to help the company acquire more Bitcoin. The proposals will also encourage future capital market activity more generally and serve other corporate purposes.
