MicroStrategy Seeks Shareholder Approval for Stock Increase

Investing.com — MicroStrategy Incorporated (NASDAQ:MSTR) is asking shareholders to approve an increase in its authorized shares of class A common stock and preferred stock to raise funds for buying more bitcoin, as stated in a regulatory filing.

The company plans to:
– Increase its authorized class A common stock from 330 million shares to 10.33 billion shares.
– Raise its authorized preferred stock from 5 million to 1.005 billion shares.

The proposals will be voted on at a special meeting and are part of MicroStrategy's 21/21 Plan, a three-year $42 billion capital initiative announced in October 2024. The plan aims to raise $21 billion through equity offerings and $21 billion through fixed-income instruments, such as debt and convertible notes, with funds allocated for more bitcoin purchases.

By leveraging both equity and convertible debt while capitalizing on its equity premium, MicroStrategy has grown its bitcoin holdings at a faster pace than its share dilution.