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MicroStrategy is set to hold a special shareholder meeting where members will vote on increasing outstanding shares from 330 million to 10.33 billion. The move comes as Michael Saylor doubles down on his commitment to Bitcoin accumulation through the ambitious “21/21 Plan.”
Inside the 21/21 Plan
The 21/21 Plan outlines raising $21 billion via equity financing and another $21 billion through bond issuance over three years. The funds aim to purchase more Bitcoin, reinforcing MicroStrategy’s stance as a Bitcoin advocate. Since mid-2020, the company has acquired 444,262 BTC, now valued at approximately $42 billion, making it the fourth-largest Bitcoin holder globally. This strategy has significantly impacted MicroStrategy’s market cap, which surged from $1.1 billion to $82 billion, with shares rising 477% this year.
Key Proposals on the Table
MicroStrategy proposes to:
- Increase Class A Shares: Expand from 330 million to 10.33 billion shares to support future financing.
- Preferred Stock Authorization: Raise the limit from 5 million to 1.005 billion shares, offering diverse funding options.
- Equity Incentive Plan Updates: Align new board members’ compensation with the company’s Bitcoin-focused strategy.
These measures aim to secure ample funding for long-term Bitcoin accumulation, ensuring MicroStrategy remains financially stable.
Mixed Reactions in the Community
[embed]https://twitter.com/ishbills/status/1871350625109496112[/embed] The announcement has sparked debate within the crypto community. Some users, like Asymmetry, see it as a gradual, long-term strategy aligned with Saylor’s vision to "buy the dip" during market downturns. While this proposal aligns with Trump’s push for a Bitcoin Reserve Plan in the U.S., it highlights Saylor’s steadfast belief in Bitcoin’s transformative potential and his drive to lead corporate adoption. Disclaimer: The views and opinions expressed in this article are for informational purposes only and do not constitute financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.