MicroStrategy to Hold Shareholder Vote on Increasing Authorized Shares

MicroStrategy, the largest corporate holder of Bitcoin to date, has filed a preliminary notice with the Securities and Exchange Commission (SEC) to hold a shareholder vote on several key items, including increasing the number of authorized shares of common and preferred stocks.

The meeting, which is expected to take place in early 2025, will be held via a live webcast accessible only to MicroStrategy stockholders. The purpose of the meeting is to vote on several proposals, including two related to the company’s capital stock.

Increasing Authorized Shares to Reach the 21/21 Plan

MicroStrategy aims to raise $42 billion in capital through its 21/21 plan, which involves raising $21 billion in equity capital and $21 billion in fixed-income instruments. To achieve this goal, the company is seeking to increase the number of authorized shares of class A common stock from 330 million shares to 10.33 billion shares, valued at $0.001 per share.

Shareholders will also vote on whether to approve an increase in the number of authorized shares of preferred stock from 5 million shares to over 1 billion shares.

“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,” said Michael Saylor, Chairman of MicroStrategy.

Other Proposals on the Agenda

In addition to the proposals related to authorized shares, MicroStrategy shareholders will also vote on:

  • Providing automatic equity award grants to new members of the company’s Board of Directors upon their appointment.
  • Adjournment of the Special Meeting if necessary to solicit additional proxies if the number of votes fail to reach the necessary threshold.

MicroStrategy has been actively expanding its Bitcoin reserves, recently adding 5,262 Bitcoin to its holdings, bringing the total to 444,262 Bitcoin.

Stay up-to-date with the latest news and developments in the world of cryptocurrencies and investing on Global Crypto News.

Post Views: 1