Key Points
- MicroStrategy announced an ambitious three-year $42 billion capital plan (21/21 Plan) to raise $21 billion in equity capital and $21 billion in fixed-income instruments, with proceeds being used to purchase bitcoin.
- The company is seeking stockholder approval to increase authorized Class A common stock from 330 million to 10.33 billion shares and preferred stock from 5 million to 1.005 billion shares to support this plan.
Bitcoin Treasury Strategy
MicroStrategy is rapidly executing its 21/21 Plan, having already raised significant proceeds through sales of Class A common stock and convertible notes, which have been used to purchase bitcoin. The company’s evolution as a Bitcoin Treasury Company represents a major strategic focus, with recent board appointments bringing expertise in digital assets and capital markets.
Capital Structure Changes
The company is proposing substantial increases to its authorized shares to provide flexibility in raising capital through various instruments including common equity, convertible securities, and preferred stock. This expanded capital structure would allow MicroStrategy to opportunistically raise funds based on market conditions to support its bitcoin acquisition strategy.
Leadership Updates
The company recently welcomed three new board members – Brian Brooks, Jane Dietze, and Gregg Winiarski – specifically chosen for their experience in digital assets, capital markets, and regulatory matters. These appointments reflect MicroStrategy’s commitment to strengthening its governance around its bitcoin-focused strategy.
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