MicroStrategy Plans Special Shareholder Meeting to Expand Bitcoin Holdings
MicroStrategy Inc (NASDAQ: MSTR) aims to continue its aggressive Bitcoin investment strategy. The firm has announced a special shareholder meeting to discuss proposals for raising capital to expand its Bitcoin portfolio under the 21/21 plan.
Key Proposals on the Table for MicroStrategy Bitcoin Approach
The crypto community is reacting to MicroStrategy's recent $561 million Bitcoin purchase. The company plans to bolster its BTC reserves further through a special shareholder meeting to vote on three key proposals.
- The first proposal is to increase authorized Class A shares from 330 million to 10.33 billion, providing more flexibility in raising capital.
- The second proposal involves expanding preferred shares from 5 million to 1.005 billion, creating additional financing opportunities.
- The third proposal seeks to amend the 2023 Equity Incentive Plan by including automatic equity awards for newly appointed directors to maintain focus on Bitcoin.
These measures reflect MicroStrategy’s broader strategy to retain its leadership as a Bitcoin holder. Over the past four years, the company has accumulated approximately 439,000 Bitcoins, valued at around $42 billion, contributing to an $82 billion valuation—an 80x growth since 2020.
Challenges amid Market Volatility
Despite significant growth from its Bitcoin strategy, MicroStrategy faces challenges. Its stock (MSTR) is down 30% from its November all-time high, closing at $332, with an 8.78% decline on Monday and a 19% decrease over the past week.
This decline aligns with broader cryptocurrency market trends, where Bitcoin dropped by 2% in the last 24 hours to $90,000 after reaching an all-time high of $108,000.
Michael Saylor maintains confidence in the company's Bitcoin-focused approach, even suggesting that the U.S. adopt a Bitcoin reserve to manage its $36 trillion national debt.