MicroStrategy plans to increase the number of shares

MicroStrategy continues to actively invest in Bitcoin and has proposed to shareholders the consideration of increasing its share count under the 21/21 Plan. The actions are aimed at raising $42 billion to purchase Bitcoin, which the company views as a key element of its long-term strategy.

What does this mean for shareholders?

MicroStrategy has proposed increasing the number of Class A common shares from 330 million to 10.33 billion, and preferred shares from 5 million to 1.005 billion. This increase is designed to support the purchase of $42 billion worth of BTC over the next three years. The growth in common shares will provide additional investment, while the increase in preferred shares will help strengthen financial stability. A vote on the proposal will take place in 2025, with the exact date yet to be set.

The «21/21» strategy: a look ahead

The 21/21 Plan by MicroStrategy is focused on raising $42 billion to acquire Bitcoin, using equal portions of stock and bonds (including convertible ones). This diversification helps minimize risks and ensures liquidity to maintain the company’s cryptocurrency reserves. The proposal to shareholders also includes measures to stimulate capital, including bonuses for new board members, which will strengthen leadership and support the company’s stable growth in the volatile cryptocurrency market.

One step toward implementing the strategy has been expanding the board of directors from six to nine members. The new members include experts such as Jane Ditze (Galaxy Digital), Gregg Viniarski (finance and technology), and Brian Brooks (former CEO of Binance.US). This expansion is aimed at bringing in specialists to successfully execute the company’s cryptocurrency strategy.

Market records and strategy support

In December 2023, MicroStrategy acquired 5,262 BTC for $561 million, confirming its commitment to cryptocurrency as an investment asset. The average purchase price was $106,662 per coin, reflecting a strategy of sustainable accumulation. Additionally, in December, the company’s stock was added to the Nasdaq 100 index, highlighting the growing interest from investors in its results and strategies.