Michael Saylor Leads Push for Massive Share Expansion to Fund Bitcoin Buys

MicroStrategy is set to make a significant move in its corporate strategy, with shareholders preparing to vote on crucial proposals at a special meeting scheduled for Tuesday morning in New York.

Among the key items on the agenda is a massive increase in the company’s authorized shares, paving the way for ambitious financial plans.

The proposal seeks to expand authorized Class A common stock from 330 million to a staggering 10.3 billion shares and increase preferred shares from 5 million to 1 billion. This move, bolstered by the strong influence of co-founder Michael Saylor, who controls 46% of the company’s voting power through Class B shares, is expected to gain easy approval.

MicroStrategy aims to use the additional shares to raise up to $2 billion through preferred stock offerings, which will take precedence over common stock. The funds will support the company’s ambitious “21/21 plan,” a three-year initiative to secure $42 billion via share issuances and debt sales for substantial Bitcoin acquisitions.

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Since unveiling the plan, the company has already made strides, acquiring 197,780 BTC through a series of weekly purchases. This aggressive strategy has brought it nearly halfway to its goal in a short period. Saylor has hinted that the company will revisit its broader financial approach once the target is reached.

In addition to the share-related proposals, the meeting will address revisions to the company’s equity incentive plan, including automatic stock grants for newly appointed board members. MicroStrategy still has $6.5 billion available for equity offerings under its broader strategy.

Kosta Gushterov

Kosta has been working in the crypto industry for over 4 years. He strives to present different perspectives on a given topic and enjoys the sector for its transparency and dynamism. In his work, he focuses on balanced coverage of events and developments in the crypto space, providing information to his readers from a neutral perspective.