MicroStrategy Proposes Expanding Shares to Fund Ambitious Bitcoin Acquisitions

MicroStrategy, the largest corporate holder of Bitcoin, has proposed a dramatic increase in its authorized shares as part of a strategy to bolster its Bitcoin holdings. The proposal, detailed in a proxy statement filed with the Securities and Exchange Commission (SEC), seeks shareholder approval to raise its Class A common shares from 330 million to 10.33 billion and its preferred shares from 5 million to 1.005 billion.

Aiming for $42 Billion in Capital

The move aligns with MicroStrategy’s “21/21” plan, a three-year initiative to secure $42 billion in capital, evenly split between equity financing and fixed-income instruments like debt and convertible notes. The capital will fund future Bitcoin acquisitions and cement MicroStrategy’s role as a leading Bitcoin treasury firm.

Co-founder and Executive Chairman Michael Saylor described the proposal as pivotal to the company’s evolution:

“The proposals we are asking you to consider reflect a new chapter in our evolution as a Bitcoin Treasury Company and our ambitious goals for the future.”

Expanding Leadership and Equity Incentives

MicroStrategy has also expanded its board of directors from six to nine members, appointing notable cryptocurrency experts Brian Brooks, Jane Dietze, and Gregg Winiarski. To attract talent, the company has introduced an equity incentive plan that grants automatic equity awards to new board members.

Growing Bitcoin Portfolio

Since declaring Bitcoin its primary treasury asset in 2020, MicroStrategy has accumulated 444,262 BTC, valued at over $41.6 billion. The company recently acquired 5,262 BTC for $561 million, reinforcing its commitment to its Bitcoin strategy.

Market Performance and Nasdaq Inclusion

Despite its growing Bitcoin portfolio, MicroStrategy’s stock has faced short-term challenges, falling 8.78% on Monday and 17.6% over the past month. However, it has experienced a 450% surge over the past year.

In a significant milestone, MicroStrategy joined the Nasdaq 100 index on December 23, 2024, cementing its position among the top 100 largest firms on the exchange. This inclusion offers indirect Bitcoin exposure to stock investors, including holders of the Invesco QQQ Trust (QQQ), a $322 billion ETF.

Supporting Bitcoin Policy

Michael Saylor has also endorsed President-elect Donald Trump’s proposal to establish a strategic Bitcoin reserve. The policy aims to strengthen the U.S. digital asset industry, set compliance standards, and define rights for crypto asset holders.