Mike Smith
December 24, 2024
MicroStrategy has announced its intention to significantly increase the number of its shares to implement a long-term strategy aimed at actively acquiring bitcoins. The proposals, which will be put to a shareholder vote in 2025, would increase the number of Class A common shares by 10 billion and preferred shares by 1 billion. If approved, the total number of common shares would increase from 330 million to 10.33 billion, and preferred shares would increase from 5 million to 1.005 billion.
The company calls the move a significant step in its evolution, emphasizing its ambitious goals to solidify its position as a leading player in the bitcoin market. The changes will be a key element of its “21/21 Plan,” which aims to raise $42 billion over three years. The funding will be distributed equally through shares, including preferred shares, and bonds, including convertible bonds.
As part of this strategy, MicroStrategy also expanded its board of directors from six to nine members, adding Jane Dietze, Gregg Winiarski, and Brian Brooks. Brooks previously served as CEO of Binance.US, while Dietze has been on the board of Galaxy Digital since 2022. These appointments highlight the company’s commitment to attracting experienced professionals to strengthen the execution of its Bitcoin strategy.
The SEC filing also mentions incentives for the company’s management, including automatic bonuses for new board members. These steps reflect MicroStrategy’s confidence in its ability to achieve its stated goals.
Notably, MicroStrategy was included in the Nasdaq 100 index in December last year. In parallel, the company acquired 5,262 BTC, paying about $561 million for them at an average price of $106,662 per coin. Such actions demonstrate a consistent pursuit of a strategy of digital asset accumulation, which in turn inspires other companies, including public miners, to actively use similar approaches.
