MicroStrategy Expands Horizons with New Shares and Ambitious Bitcoin Purchase Plan
Date: 2024-12-24 Author: Gabriel Deangelo Categories: BUSINESS
The proposed changes would increase the number of Class A common shares from 330 million to 10.33 billion, and preferred shares from 5 million to 1.005 billion.
As noted in the company’s document, this decision marks a new stage in its development as a corporation focused on managing bitcoin assets. A vote on this proposal is scheduled for 2025, but the exact date has not yet been determined.
A key goal of this move is to support the “21/21” plan, which aims to attract $42 billion in investment over the next three years. These funds will come equally from the sale of shares, including preferred, and the placement of bonds, including convertible ones.
Additionally, the proposal includes equity incentives such as automatic bonuses for new board members.
The company also filed an updated document with the SEC, where it announced that it has increased its board of directors from six to nine members. The new members are Jane Dietze, who has been on the Galaxy Digital board since 2022, Gregg Winiarski, and Brian Brooks, who previously served as CEO of Binance.US in 2021.
MicroStrategy recently announced that it purchased 5,262 BTC between December 16 and 22. The total deal value was approximately $561 million, with the average price per coin being $106,662.
December was also a significant month for the company, with its shares being included in the Nasdaq 100 index.
The second half of 2024 has seen growing interest in the Bitcoin accumulation strategy among public miners, who are increasingly following MicroStrategy's example, JPMorgan reports.
