MicroStrategy holds shareholder meeting to raise funds to buy more Bitcoin

Author: Ana Paula Pereira, Cointelegraph; Compiler: Deng Tong, Golden Finance

Software company MicroStrategy is holding a special shareholders meeting to expand its stock issuance plan and purchase more Bitcoin.

According to a proxy filing filed with the U.S. Securities and Exchange Commission on December 23, the company is seeking permission to increase the number of authorized shares of Class A common stock and preferred stock to have greater flexibility to issue more shares in the future as needed.

The first amendment seeks to increase the authorized Class A common stock from 330 million shares to 10.33 billion shares, while the second amendment seeks to increase the authorized preferred stock from 5 million shares to more than 1 billion shares.

Documents filed by MicroStrategy on December 23, 2024. Source: Street Insider

Behind these proposals is MicroStrategy's $21 billion plan. The plan, disclosed in October, outlines the company's goal of purchasing an additional $42 billion worth of Bitcoin over the next three years. The plan includes raising $21 billion through stock sales and another $21 billion through fixed-income securities.

According to MicroStrategy’s filing:

“Proposals 1 and 2 of this Special Meeting call for an increase in the authorized shares of the Company’s capital stock to support further implementation of our $21 billion plan and broader capital markets activities in the future, and other corporate purposes.”

The company has been acquiring BTC regularly since 2020, but has stepped up its purchases since the plan was announced. In December alone, it purchased 42,162 bitcoins, worth more than $4 billion at current prices.

At the end of October, MicroStrategy reported a 17.8% return on its BTC, with plans to achieve annual returns of 6% to 10% between 2025 and 2027. Since then, it has reportedly raised $13 billion through stock offerings and $3 billion through convertible debt offerings.

“We have executed our 2.1 billion plan much faster than originally anticipated,” the filing states.

As of Dec. 22, the company and its subsidiaries collectively owned approximately 444,262 BTC, valued at approximately $43.53 billion. The tokens were acquired for a total of $27.7 billion, at an average purchase price of $62,257 per BTC.

MicroStrategy currently holds more than 444 million BTC. Source: Saylor Tracker

The company's Nasdaq-listed shares have risen more than 422% so far this year - largely thanks to its Bitcoin strategy. The date for the special shareholder meeting has not yet been announced. The company's next earnings report is scheduled for February 2, 2025.