MicroStrategy Seeks Shareholder Approval for Large-Scale Bitcoin Investment Strategy
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MicroStrategy Seeks Shareholders Approval for $42B Bitcoin Plan
In a special shareholder meeting held today via live webcast, MicroStrategy has taken center stage to discuss its ambitious $42 billion three-year deal, dubbed the 21/21 Plan. The company’s focus is on ensuring financial sustainability and stability.
The meeting centered around two proposals aimed at accelerating the company’s Bitcoin investments. Firstly, MicroStrategy seeks approval to expand its stock issuance limit, thereby boosting the company’s Bitcoin purchases. This proposal would enable the firm to increase its capital raising capacity by issuing common equity or convertible instruments, allowing it to respond to changing market conditions and choose the most advantageous funding options.
Secondly, the company has put forward an amendment to Article Four of the Second Restated Certificate of Incorporation with a vision to increase the number of authorized shares of Class A common stock from 330,000,000 to 10,330,000,000. This move is expected to support future financing for its Bitcoin investments.
MicroStrategy also intends to raise $21 billion through equity financing and an additional $21 billion through bond issuance over a three-year period. The funds generated will be used to purchase more Bitcoin, strengthening the company’s BTC portfolio. As of 2020, MicroStrategy has been accumulating Bitcoin, with its current holding reaching 444,262 BTC, worth around $42 billion.
During the meeting, shareholders will be directed to vote for or against these proposals. If approved, Proposal 1 would provide flexibility to the company to raise capital by issuing common equity or convertible instruments. It allows them to respond to changing market conditions and choose the most advantageous funding options.
On the other hand, Proposal 2 will allow MicroStrategy to issue preferred stock with customizable terms set by its Board of Directors. This plan gives the opportunity to offer a broader range of securities as part of the 21/21 Plan.
Additionally, the shareholders’ meeting will consider updating MicroStrategy’s 2023 Equity Incentive Plan. The move aims to provide automatic equity awards to new board members, aligning their compensation with the company’s Bitcoin-focused strategy.
Overall, the primary focus remains on ensuring financial sustainability and stability for the firm by expanding its capital raising capacity and securing additional financing options.
Source: cryptotale.org
