Key Notes
- MicroStrategy plans to increase Class A shares to 10.33 billion for better financing.
- The firm has amassed 439,000 Bitcoins worth $42 billion.
MicroStrategy Inc (NASDAQ: MSTR) is looking to maintain the aggressive momentum it employs in its Bitcoin investment strategy. To this end, the firm has announced a special shareholder meeting to deliberate on the way forward. According to the business intelligence company, the meeting will focus on proposals that will help it raise capital for the expansion of its Bitcoin portfolio. That is, under the ambitious 21/21 plan.
For what it’s worth, the firm, led by Executive Chairman Michael Saylor, is now a leader in Bitcoin investment strategies.
Key Proposals on the Table for MicroStrategy Bitcoin Approach
Notably, the crypto community is still reeling from the recent $561 million Bitcoin
BTC
$93 808
24h volatility:
2.4%
Market cap:
$1.86 T
Vol. 24h:
$53.09 B
purchase that MicroStrategy made. However, it appears that the company is far from done with bolstering its BTC reserves.
This is why MicroStrategy has convened this special meeting to allow shareholders to vote on about three proposals that will see to it that it achieves its goals.
The first proposal that MicroStrategy is looking at is to increase Class A shares. It plans to raise the number of authorized Class A shares from 330 million to 10.33 billion. Expectedly, this move will give the firm more flexibility and ease of raising capital when it needs to do so in the future.
Furthermore, the firm is proposing the expansion of preferred shares. That is, from 5 million to 1.005 billion. This move is also expected to open up more financing opportunities to fund some other initiatives.
Lastly, there is the proposal to amend the 2023 Equity Incentive Plan. Some of the changes being suggested include automatic equity awards for newly appointed directors. This ensures that the firm does not lose its primary focus, which is Bitcoin.
In all, it is clear that all the measures being put in place are part of MicroStrategy’s broader strategy to retain its leadership position as a Bitcoin holder. Through the last four years, the company has scooped up no less than 439,000 Bitcoins, worth around $42 billion at current rates.
Notably, this Bitcoin strategy has undoubtedly impacted the company’s growth. That is, with the accumulation sending its valuation to $82 billion, an 80x growth since 2020.
Challenges amid Market Volatility
Meanwhile, despite the impressive growth that its aggressive Bitcoin strategy has brought, MicroStrategy has seen challenges in recent times. Its stock, listed under the ticker MSTR, is 30% down from its November ATH. That is, as it closed at $332 on Monday. This meant that it fell 8.78% in the day and also experienced a 19% decrease over the past week.
Nonetheless, it should be noted that the decline coincides with what is happening in the broader cryptocurrency market. The crypto market is also on a decline, with Bitcoin dropping by 2% in the last 24 hours to $90,000 after it recently hit an all-time high of $108,000.
Even in this situation, Michael Saylor remains fairly confident in the company’s Bitcoin-focused approach. So much is this confidence, that he even suggested that the US adopt a Bitcoin reserve to manage its $36 trillion national debt.
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Mayowa is a crypto enthusiast/writer whose conversational character is quite evident in his style of writing. He strongly believes in the potential of digital assets and takes every opportunity to reiterate this.
He’s a reader, a researcher, an astute speaker, and also a budding entrepreneur.
Away from crypto however, Mayowa’s fancied distractions include soccer or discussing world politics.
