MicroStrategy Announces Shareholder Meeting to Discuss Selling Shares and Buying More Bitcoin

Highlights:

• MicroStrategy shareholders will vote on increasing common stock to 10.3 billion shares.
• The vote will also address amendments to the equity incentive plan and board changes.
• MicroStrategy stock drops 8.78%, extending losses despite Nasdaq 100 inclusion in December.

On December 23, MicroStrategy, a software development firm and the largest corporate owner of Bitcoin announced its plans to hold a special meeting with shareholders to vote on proposals to support its ambitious $42 billion BTC purchase plan. The exact date for the special stockholder meeting has not been announced. The meeting is set for next year, as per a notice filed with the SEC. The meeting will take place via webcast. 

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The 21/21 Plan Unveiled

The proposal aims to increase Class A common shares from 330 million to 10.33 billion. It also seeks to raise preferred shares from 5 million to 1.005 billion. MicroStrategy explained that the share increase supports its “21/21” plan. This is a three-year, $42 billion capital plan. The plan aims to raise $21 billion in equity capital and $21 billion in fixed-income instruments. These include debt, convertible notes, and preferred stock. The plan supports MicroStrategy’s future purchase of Bitcoin.

The Virginia-based company wants stockholder approval to change its equity incentive plan. If approved, the amendment will automatically grant equity awards to three newly appointed directors. These directors—Brian Brooks, Jane Dietze, and Gregg Winiarski—will receive equity awards valued at $2 million upon their initial appointment to the Board. “The proposals we are asking you to consider reflect a new chapter in our evolution as a bitcoin treasury company and our ambitious goals for the future,” the statement said.

BREAKING: MicroStrategy to hold special shareholder vote to sell more shares and buy more #Bitcoin

SAYLOR CAN’T BE STOPPED 🚀 pic.twitter.com/poM94MKwnC

— Bitcoin Magazine (@BitcoinMagazine) December 24, 2024

This shows Michael Saylor’s full commitment to MicroStrategy’s Bitcoin-focused strategy. Over the last four years, the company has acquired 439,000 Bitcoins. These Bitcoins are currently worth around $42 billion. Additionally, the strategy has helped boost the company’s valuation to $82 billion. This marks an 80x increase since the company first implemented its Bitcoin plan in 2020.

MicroStrategy Stock Faces Decline Despite Nasdaq 100 Inclusion

MicroStrategy stock has been falling despite being added to the Nasdaq 100 Index in December. On Monday, the MSTR stock price dropped 8.78%, reaching $332. This extends its weekly losses to 19% and monthly losses to 17.65%. From its all-time high of $472 in November, the stock has fallen 30%. However, it has still been up by 384% since the start of this year.

Michael Saylor remains hopeful for growth during the Donald Trump administration. He proposed a strategic Bitcoin reserve to help the US address its $36 trillion national debt. “By establishing a clear taxonomy, a legitimate rights-based framework, and practical compliance obligations, the United States can lead the global digital economy,” he wrote.

After reaching an all-time high of $108K last week, Bitcoin has faced increased selling pressure. In the last 24 hours, BTC has dropped another 1%, extending its weekly losses to 12.23%. Bitcoin is now eyeing a further decline to $90,000. Coinglass data shows $65 million in BTC liquidations, with $45 million in long liquidations.

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