MicroStrategy has filed a proxy statement with the SEC seeking shareholder approval to advance its 21/21 Plan related to the purchase of additional Bit.
The MicroStrategy software company has called a special shareholder meeting to expand its plan to issue stock and purchase additional Bit.
According to a filing dated 12/23, MicroStrategy is seeking approval to increase the number of authorized shares of both Class A Common Stock and Preferred Stock, in order to facilitate the issuance of additional shares as needed in the future.
The first proposal aims to increase the authorized Class A Common Stock from 330 million to 10.33 billion shares, while the second proposal seeks to increase the authorized Preferred Stock from 5 million to over 1 billion shares.
These proposals are part of MicroStrategy's 21/21 Plan. Announced in October, the plan aims to acquire an additional $42 billion worth of Bit over the next three years. The plan involves raising $21 billion through stock sales and an additional $21 billion through fixed-income securities.
According to MicroStrategy's filing:
"Proposals 1 and 2 at the Special Meeting seek to increase the company's authorized shares to support the further deployment of the 21/21 Plan as well as future capital market activities and other corporate purposes."
The company has been regularly purchasing Bit since 2020 but has accelerated its purchases since the plan was announced. In December alone, the company acquired 42,162 Bit, worth over $4 billion at current prices.
At the end of October, MicroStrategy reported a 17.8% Bit yield, with plans to achieve annual yields of 6% to 10% from 2025 to 2027. Since then, the company is said to have raised $13 billion through stock issuances and $3 billion through convertible bond offerings.
"We have executed the 21/21 Plan significantly faster than originally anticipated," the filing notes.
As of 12/22, the company and its subsidiaries hold approximately 444,262 Bit, worth around $43.53 billion. This Bit was acquired at a total cost of $27.7 billion, resulting in a Medium purchase price of approximately $62,257 per Bit.
MicroStrategy's stock on the Nasdaq has risen over 422% since the beginning of the year — largely due to the company's Bit strategy. The date of the special shareholder meeting has not been announced. The company's next earnings report is expected to be released on 2/2/2025.
Keep following Coin Moi for the latest updates in the market!
The article MicroStrategy holding shareholder meeting to raise Capital for additional Bit purchase first appeared on CoinMoi.
