Key Takeaways
- MicroStrategy plans to increase authorized shares to support its Bitcoin purchasing strategy.
- The company’s Bitcoin holdings surge to 450,000 BTC, now valued at $48.5 billion.
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MicroStrategy shareholders are set to vote on several key proposals during a special meeting scheduled for 10 a.m. New York time on Tuesday, according to a recent report from Bloomberg.The key focus of the vote will be to approve an increase in authorized Class A common stock from 330 million shares to 10.3 billion shares. Shareholders will also consider raising the number of authorized preferred shares from 5 million to 1 billion.Bloomberg reported that MicroStrategy’s upcoming shareholder vote is likely to easily approve the proposed measure, given co-founder and chairman Michael Saylor’s substantial voting power—approximately 46% through his Class B shares.The company also plans to raise up to $2 billion through preferred stock offerings, which would rank senior to Class A shares.The increase would advance MicroStrategy’s 21/21 plan, which targets raising $42 billion over three years through share issuances and debt sales to support extensive Bitcoin acquisitions.Since revealing the plan, MicroStrategy has accumulated 197,780 BTC through 10 consecutive weekly purchases, reaching almost half of its goal in over two months. Saylor previously told Bloomberg that the company would re-evaluate its capital allocation strategy after achieving the goal.
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