MicroStrategy’s upcoming special shareholder meeting is causing a stir because of a key vote: whether to increase the company’s outstanding shares from 330 million to 10.33 billion. This move is at the heart of MicroStrategy’s plan to continue accumulating Bitcoin.
While some see it as a bold move, others worry about its impact on the company’s financial health.
Michael Saylor, CEO of MicroStrategy, has become well-known for the company’s aggressive Bitcoin buying strategy. However, not everyone agrees with this approach. Many shareholders have opposed his plan, fearing it could hurt the company’s financial position. Despite this, Saylor is determined to stick to his strategy, which has been a key point of discussion.
Will shareholders support Saylor’s plan, or will they push back? Let’s take a closer look at the proposal and what the community is saying.
Saylor’s “21/21” plan is a proposal to raise $21 billion through equity financing and another $21 billion through bond issuance over the next three years. These funds would be used to buy more Bitcoin, reinforcing the company’s commitment to the cryptocurrency.
Since mid-2020, MicroStrategy has already acquired 444,262 BTC, worth around $42 billion, making it the fourth-largest Bitcoin holder in the world. As a result, the company’s market cap has soared from $1.1 billion to $82 billion, with its stock price rising by 477% this year.
To help fund this plan, MicroStrategy wants to increase its Class A shares from 330 million to 10.33 billion and raise the limit for preferred stock from 5 million to 1.005 billion. The company also plans to update its equity incentive plan, which would grant automatic equity awards to new board members.
This ensures that their compensation aligns with MicroStrategy’s Bitcoin-focused strategy and gives the company the resources it needs to continue its Bitcoin purchases.
Institutional adoption is driving Bitcoin’s growth—what’s next for its price? Read Bitcoin price prediction for expert insights!
The proposal has sparked a range of reactions. Some, like Twitter user Asymmetry, argue that shareholder voting is a slow process, meaning share issuance could take 10 to 15 years to fund Bitcoin purchases. This shows that Saylor plans to hold Bitcoin for the long term.
On the other hand, some users, like @ibills, criticize the plan, saying shareholders should first see the results of current strategies before agreeing to further dilution. They also warn that this could lead to fears of large-scale liquidations in the future.
At the same time, former President Donald Trump is pushing his own Bitcoin Reserve Plan to help boost the U.S. economy. Trump’s plan could add more pressure on Saylor and other U.S. companies as they compete in the cryptocurrency space. Meanwhile, Saylor’s decision to buy Bitcoin during a market downturn shows his commitment to the strategy of “buying the dip” and holding for the long term.
Saylor’s high-stakes Bitcoin gamble is a story the financial world won’t soon forget.
The MicroStrategy Bitcoin strategy focuses on using corporate funds and equity to accumulate Bitcoin, aiming for long-term value growth.
The MSTR 21/21 plan proposes raising $42B through equity and bonds over three years to acquire more Bitcoin, reinforcing their Bitcoin-centric vision.
The $42B plan involves raising funds via shares and bonds to purchase Bitcoin, expanding MicroStrategy’s holdings and market influence.
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