MicroStrategy, a business intelligence company, has announced its intention to hold a special meeting with its shareholders to seek approval for proposals aimed at strengthening its Bitcoin-centric approach under its proposed “21/21 plan.” The company aims to enhance its financial flexibility and align directors’ remuneration with its focus on acquiring more Bitcoin and related ventures.
The first proposal involves expanding the company’s capital-raising capacity. Currently, the authorized number of Class A shares stands at 330 million, but MicroStrategy is seeking approval to issue up to 10.33 billion shares. This move would significantly improve the company’s ability to finance potential future investments, including additional Bitcoin purchases, thus enhancing its prospects.
Furthermore, it has been suggested that the company increase its authorized preferred shares from 5 million to 1.005 billion. By expanding its sources of funding, MicroStrategy aims to sustain its aggressive pace of Bitcoin acquisition while considering other strategic long-term goals.
To further solidify its Bitcoin-centric strategy, MicroStrategy has proposed changes to the 2023 Equity Incentive Plan. These changes include granting equity awards to new directors, reminding the company of its vision for Bitcoin investment and expansion.
MicroStrategy currently holds 439,000 Bitcoins, equivalent to approximately $42 billion at current prices. This positions the company as one of the largest Bitcoin owners globally, second only to Satoshi Nakamoto, BlackRock’s Bitcoin ETF, and Binance. MicroStrategy’s increased focus on Bitcoin in 2020 has resulted in an 80-fold increase in its valuation, with its market capitalization potentially reaching $82 billion.
Executives at MicroStrategy, including co-founder and executive chairman Michael Saylor, continue to express strong support for the Bitcoin strategy, highlighting its potential for higher growth rates in the future.
Despite being featured in the NASDAQ100 Index, MicroStrategy’s stock (MSTR) has experienced a decline in recent times. On Monday, the stock dropped by 8.78% to $332, marking a 19% decrease for the week and a 17.65% decrease for the month. Since reaching its peak at $472 in November, the stock price has retraced by 30%.
The company’s stock performance has been influenced by factors such as the volatility in the Bitcoin market. Bitcoin recently reached an all-time high of $108k, but there has been selling pressure, causing it to drop to $90k, resulting in a weekly loss of 11.52%.
Nevertheless, MicroStrategy remains optimistic about its Bitcoin-focused strategy and anticipates a more favorable legal framework for cryptocurrencies in the United States.