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- MicroStrategy proposes a 2,200% share increase to fund its $42B Bitcoin accumulation strategy.
- The “21/21 Plan” aims to raise $42B over three years, doubling down on Bitcoin as a financial reserve.
- Equity awards for new board members align with MicroStrategy’s Bitcoin-focused vision, sparking mixed reactions.
MicroStrategy has announced a special shareholder meeting to vote on key proposals aimed at accelerating its ambitious “21/21 Plan.” The proposals focus on increasing financing options, aligning director compensation, and simplifying funding processes to enhance its Bitcoin-centric approach.
Proposed Increase in Share Authorization
The first proposal seeks to increase authorized Class A shares from 330 million to 10.33 billion. This would provide significant room for future equity financing. Additionally, the proposal includes raising authorized preferred shares from 5 million to 1.005 billion. This measure aims to expand the company’s ability to secure funding through alternative channels.
If approved, the total authorized shares would grow from 500 million to 11.5 billion. This marks a 2,200% increase and sets the stage for substantial capital-raising initiatives.
Aligning Director Compensation
Another key proposal involves amending the 2023 equity incentive plan. The revisions aim to automatically grant equity awards to new board members. These awards will align their compensation with the company’s Bitcoin-focused strategy. Caps of $3 million in stock options and $3 million in restricted stock units (RSUs) have been disclosed.
RSUs typically vest over time, requiring ongoing service. This ensures a long-term alignment between the board members and the company’s vision.
Objectives of the 21/21 Plan
The “21/21 Plan” seeks to raise $21 billion in equity capital and $21 billion in fixed-income capital over three years. The funds will be used to purchase Bitcoin as a financial reserve asset. The company aims to generate higher returns through this strategy.
Since mid-2020, MicroStrategy has acquired over 444,000 BTC, now valued at approximately $42 billion. The company’s market cap has surged, and its stock price has seen a significant rise.
The proposals have drawn mixed reactions within the crypto community. Some view the plans as a long-term commitment to Bitcoin accumulation. Others express concerns about potential shareholder dilution and the long timeline required for full execution.
The outcome of the vote will determine MicroStrategy’s ability to execute its bold strategy. Shareholders will decide the company’s next steps as it continues to champion Bitcoin adoption.
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