MicroStrategy Plans to Expand Equity Plan for Bitcoin Purchases
MicroStrategy has scheduled a special shareholder meeting to approve changes to its stock issuance strategy to fund additional Bitcoin acquisitions.
The company has completed three rounds of BTC purchases in December.
MicroStrategy’s Non-Stop Bitcoin Buying Strategy
acting Archive The company disclosed to the SEC on December 23 that it plans to increase its authorized shares of Class A common stock and preferred stock. The move is intended to provide greater flexibility for future share issuances.
Simply put, the company wants approval to significantly increase the maximum number of shares it can issue, expanding Class A common shares from 330 million to 10.33 billion and preferred shares from 5 million to more than 1 billion.
The proposed changes comply with MicroStrategy’s 21/21 Planfirst disclosed in October. The plan outlines a three-year goal of acquiring $42 billion worth of Bitcoin.
These Bitcoin purchase Funding will be raised through $21 billion in stock sales and another $21 billion through fixed-income securities.
“If you don’t buy Bitcoin at the top, you’re leaving money on the table,” Michael Saylor release Earlier today.
MicroStrategy increased its Bitcoin purchases in 2024, purchasing 42,162 Bitcoins in December alone, worth more than $4 billion at current prices.
As of October, the company reported Bitcoin Yield The company yields 17.8% and targets annual returns of 6% to 10% between 2025 and 2027. The company has raised $13 billion through stock offerings and $3 billion through convertible debt offerings.
But according to reports, the company planned outage period This will temporarily suspend purchases during the month of January.
Overall, Bitcoin’s strong performance in 2024 has had a positive impact on MicroStrategy stock. MSTR is up more than 420% year to date. The surge in value has contributed to its Incorporated into Nasdaq 100 Indexis expected to join the S&P 500 Index next year.
“Last week, $MSTR financial operations resulted in Bitcoin production 0.72%, with a net gain of approximately 3,177 BTC. At $94,000 per BTC, this equates to a $299 million gift to our shareholders. ” release on X (formerly Twitter).
Other companies, including Marathon Digital Holdings (MARA) and Riot Platforms, have also Bitcoin buying intensifies. Despite this trend, MicroStrategy remains Largest Corporate Bitcoin Holdersled by Michael Saylor’s aggressively cumulative approach.
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