MicroStrategy Considers Expanding Shares for Bitcoin Acquisition Plan

MicroStrategy shareholders will be asked to approve an increase in the number of Class A common shares by 10 billion and preferred shares by 1 billion as part of its bitcoin strategy.

If approved, the first parameter will rise from 330 million to 10.33 billion, and the second from 5 million to 1.005 billion.

“The initiative reflects a new chapter in our evolution as a bitcoin treasury company and our ambitious goals for the future,” the document states.

The vote is scheduled for 2025, though a specific date has not been set.

The proposed increase in securities will facilitate the implementation of the “21/21” Plan aimed at purchasing bitcoins. It involves raising $42 billion over the next three years in equal parts through shares, including preferred, and bonds, including convertibles.  

The proposal also details an equity incentive plan, including automatic grants of awards to new directors.

In the form filed with the SEC, MicroStrategy expanded its board of directors from six to nine members. 

The new members are Jane Dietze, Gregg Viniar, and Brian Brooks. The latter is known for his role as CEO of Binance.US in 2021, while Dietze has been on the board of Galaxy Digital since 2022.

Back in December, MicroStrategy acquired 5,262 BTC for ~$561 million at an average price of about $106,662 per coin.

In December, the company’s shares were included in the Nasdaq 100 index.

In the latter half of the year, public miners of the first cryptocurrency increasingly adopted MicroStrategy’s strategy of accumulating digital gold, according to JPMorgan.