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MicroStrategy is doubling down on its ambitious Bitcoin investment strategy with a new proxy filing aimed at enabling significant equity raises.
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This move aligns with the company’s broader 21/21 Plan, designed to amass an additional $42 billion in Bitcoin over the coming three years.
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According to the filing, “Proposals 1 and 2 for this Special Meeting request an increase in the authorized shares of the capital stock of the Company to support further implementation of our 21/21 Plan.”
MicroStrategy seeks shareholder approval to enhance its Bitcoin holdings significantly as part of its long-term investment strategy, showcasing a forward-looking approach in the crypto space.
MicroStrategy’s 21/21 Plan: Expanding Bitcoin Holdings Significantly
MicroStrategy has initiated a special shareholder meeting to gain approval for an increased equity-issuance plan, prominently linked to its 21/21 Bitcoin investment strategy. This ambitious plan, originally disclosed in October 2024, sets the company on a path to purchase an additional $42 billion in Bitcoin over three years. Central to this strategy is a two-pronged approach: raising $21 billion through equity sales and the other half through fixed-income securities.
Details of the SEC Proxy Filing and Shareholder Meeting
The company’s recent proxy filing with the SEC on December 23, 2024, outlines precisely what is at stake: a significant increase in authorized shares. Currently, MicroStrategy aims to raise the authorized Class A common stock from 330 million shares to a staggering 10.33 billion. In tandem, the authorization for preferred stock would rise from 5 million to over 1 billion shares. This move is designed to provide the company with the liquidity needed to further its Bitcoin acquisitions.
MicroStrategy’s Aggressive Bitcoin Accumulation Continues
As of late December, MicroStrategy reported owning approximately 444,262 BTC, valued at around $43.53 billion. The company has remarkably acquired these assets at an average price of $62,257 per BTC, amassing them since its initial investment around 2020. Notably, during December alone, the firm acquired 42,162 BTC, translating to over $4 billion at current market prices. This marked escalation illustrates MicroStrategy’s commitment to Bitcoin as a cornerstone of its financial strategy.
Performance and Future Outlook
MicroStrategy has recently revealed that its Bitcoin yield currently stands at 17.8%. The firm anticipates achieving an annual yield between 6% and 10% through 2025 to 2027. Having already generated $13 billion via stock issuances and an additional $3 billion through convertible bond offerings, the company appears on track to execute its long-term plan swiftly. The correlation between the stock’s performance and its Bitcoin strategy is evident, with MicroStrategy’s shares surging over 422% year-to-date as of the recent report.
Conclusion
MicroStrategy’s moves to enhance its Bitcoin holdings through an expanded equity plan signify a bold commitment to cryptocurrency investment. As it prepares for its special shareholder meeting, the success of these initiatives could further solidify MicroStrategy’s position in the crypto landscape, reaffirming their strategic vision. Stakeholders and investors will undoubtedly be watching closely as the company aims to reach new heights in its Bitcoin strategy amid a dynamic market environment.
