MicroStrategy Plans 11 Billion Share Issue To Buy More Bitcoin

MicroStrategy, the biggest corporate owner of Bitcoin, has proposed issuing 11 billion shares to boost its Bitcoin buying strategy.

MicroStrategy is asking for shareholder approval to increase the number of both A Class common stock and preferred stock. A company statement proposes increasing the number of authorized shares of Class A Stock from 330 million to 10.33 billion and the number of preferred shares from 5 million to 1.005 billion.

“The proposals we are asking 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 for a special stockholder meeting to vote on the proposal has not been disclosed yet.

MicroStrategy Doubles Down On Bitcoin Strategy

The move shows MicroStrategy CEO Michael Saylor doubling down on his Bitcoin-buying strategy even as the king of cryptos faces some market turbulence. The Bitcoin price has plunged almost 12% in the last week and 2% in the past 24 hours to trade at $94,144.60 as of 7.40 a.m. EST. 

Bitcoin permabull Saylor believes embracing Bitcoin can strengthen the US dollar, “empowering millions of businesses, driving growth, and creating trillions in value.”

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

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

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

Earlier this month, MicroStrategy expanded its board of directors from six to nine members. As stated in the company’s 8-K report filed 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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