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 shareholder meeting to expand its stock offering plan and buy more Bitcoin.

The company is seeking permission to increase the number of authorized shares of Class A common stock and preferred stock to give it greater flexibility to issue additional shares as needed in the future, according to a Dec. 23 proxy filing with the U.S. Securities and Exchange Commission. .

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

MicroStrategy filing December 23, 2024. Source: Street Insider

Behind these proposals is MicroStrategy's $21 billion plan. The plan, disclosed in October, outlined the company's goal to purchase 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 documentation:

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

The company has been regularly acquiring BTC since 2020, but the purchases have intensified since the plan was announced. In December alone, it purchased 42,162 Bitcoins, worth over $4 billion at current prices.

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

"We are executing on our $2.1 billion plan much faster than originally anticipated," the document states.

As of December 22, the company and its subsidiaries held a total of approximately 444,262 BTC, worth approximately $43.53 billion. The total acquisition price of these tokens was $27.7 billion, with the average purchase price being $62,257 per BTC.

MicroStrategy currently holds over 444 million BTC. Source: Saylor Tracker

The company’s shares on Nasdaq are up more than 422% year-to-date — largely thanks to its Bitcoin strategy. The date for the extraordinary general meeting has not yet been announced. The company's next earnings report is scheduled to be released on February 2, 2025.