Microstrategy plan to expand equity plan for bitcoin purchases

Microstrategy has led a special shareholder meeting to approve changes to its equity offering strategy to support additional Bitcoin purchases.

The firm completed three rounds of BTC purchases in December.

Micro strategy non-stop bitcoin buying strategy

An SEC proxy filing approved on Dec. 23 outlines the company's plan to increase the number of shares of Class A common stock and preferred stock. This move is aimed at providing more flexibility to issue shares in the future.

Simply put, the company is seeking approval to dramatically increase the maximum number of shares it can issue — expanding Class A common stock from 330 million to 10.33 billion shares and preferred stock from 5 million to 1 billion.

The proposed changes are in line with MicroStrategy's 21/21 plan, first announced in October. The plan outlines a three-year goal of achieving $42 billion in BTC.

These Bitcoin purchases are backed by $21 billion in equity sales and another $21 billion in fixed income securities.

“If you don't buy Bitcoin at the top, you're leaving money on the table,” Michael Saylor said earlier today.

MicroStrategy ramped up its Bitcoin purchases in 2024, acquiring 42,162 BTC in December alone—worth more than $4 billion at current prices.

As of October, the company reported a 17.8% Bitcoin yield and is targeting an annual yield of 6 to 10% between 2025 and 2027. It has already raised $13 billion in stock sales and $3 billion in convertible bond offerings.

However, the company is reportedly planning a shutdown in January.

Overall, Bitcoin's strong performance in 2024 positively impacted MicroStrategy's stock. MSTR has gained over 420% year-to-date. The price increase contributed to its inclusion in the Nasdaq-100, which will likely become the S&P 500 next year.

“Last week's $MSTR treasury operations yielded .72% of BTC yield, a net gain of ~3,177 BTC. At $94K per BTC, this equates to a $299 million gift to our shareholders,” Salor posted on X (formerly Twitter). .

Other firms, including Marathon Digital Holdings ( MARA ) and Riot Platforms, have also stepped up purchases of Bitcoin. Despite this trend, MicroStrategy remains the largest corporate bitcoin owner, led by Michael Saylor's aggressive fundraising strategy.