MicroStrategy plans to issue 11 billion shares to buy more Bitcoin

MicroStrategy, the largest company that owns bitcoin, has proposed issuing 11 billion shares to boost its bitcoin purchasing strategy.

MicroStrategy seeks shareholder approval to increase the number of Class A common and preferred shares. a company statement proposes increasing the number of authorized Class A shares from 330 million to 10.33 billion and the number of preferred shares from 5 million to 1.005 billion.

“The proposals we ask you to consider reflect a new chapter in our evolution as a bitcoin treasury company and our ambitious goals for the future,” the statement said.

The date of a special shareholder meeting to vote on the proposal has not yet been revealed.

MicroStrategy doubles down on its bitcoin strategy

The move shows MicroStrategy CEO Michael Saylor doubling down on his bitcoin buying strategy even as the cryptocurrency king faces some market turmoil. The price of bitcoin has plummeted almost 12% in the last week and 2% in the last 24 hours to trade at $94,144.60 at 7:40 am EST.

bitcoin permabull Saylor believes that adopting bitcoin can strengthen the US dollar, “empowering millions of businesses, driving growth, and creating trillions of value.”

<blockquote class="twitter-tweet” data-width=”550″ data-dnt=”true” wp_automatic_readability=”12.318318318318″>

A strategic digital asset policy can strengthen the US dollar, neutralize the national debt, and position the United States as a global leader in the 21st century digital economy, empowering millions of businesses, driving growth, and creating trillions in value. https://t.co/7n7jQqPkf1

—Michael Saylor (@saylor) <a target="_blank" href="https://twitter.com/saylor/status/1870183095611093220?ref_src=twsrc%5Etfw”>December 20, 2024

Saylor announced on Monday that the company acquired an additional 5,262 Bitcoins for approximately $561 million. With this latest purchase, MicroStrategy now owns 444,262 Bitcoins.

The latest proposal would be a crucial step in MicroStrategy's “21/21” plan for a three-year, $42 billion equity investment to raise $21 billion in equity capital and $21 billion in equity instruments. fixed income, including convertible notes, debt and preferred stock. .

Now, the “21/21” plan perfectly supports future bitcoin acquisitions, highlighting MicroStrategy's continued commitment to integrating the cryptocurrency into its long-term strategy.

Earlier this month, MicroStrategy expanded its board of directors from six to nine members. As indicated in the company 8-K report Introduced last Friday, the new members are Brian Brooks, Jane Dietze and Gregg Winiarski.

Brooks served as CEO of Binance for three months in 2021, while Dietze has been a member of Galaxy Digital's board of directors since 2022.

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