MicroStrategy Plans to Expand Equity Plan for Bitcoin Purchases

MicroStrategy has scheduled a special shareholder meeting to approve changes in its equity issuance strategy to fund additional Bitcoin acquisitions. 

The firm has already completed three rounds of BTC purchases in December. 

MicroStrategy’s Non-Stop Bitcoin Purchase Strategy

A proxy filing dated Dec. 23 with the SEC reveals the company’s plan to increase authorized shares of Class A common stock and preferred stock. This move aims to provide greater flexibility for issuing shares in the future.

In simple terms, the company wants approval to significantly 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 over 1 billion. 

The proposed changes align with MicroStrategy’s 21/21 Plan, first disclosed in October. The plan outlines a three-year goal to acquire $42 billion worth of BTC. 

These Bitcoin purchases will be funded through $21 billion in equity sales and another $21 billion via fixed-income securities.

“If you are not buying Bitcoin at the top, you are leaving money on the table,” Michael Saylor posted earlier today. 

MicroStrategy has ramped up Bitcoin purchases in 2024, acquiring 42,162 BTC in December alone—valued at over $4 billion at current prices.

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

However, the company is reportedly planning a blackout period in January, which will momentarily pause its purchases. 

Overall, Bitcoin’s strong performance in 2024 has positively impacted MicroStrategy’s stock. MSTR has gained over 420% year-to-date. The surge in value contributed to its inclusion in the Nasdaq-100, with potential for the S&P 500 next year.

“Last week, $MSTR treasury operations resulted in a BTC Yield of .72%, a net benefit of ~3,177 BTC. At $94K per BTC, that equates to a $299 million gift to our shareholders,” Saylor posted on X (formerly Twitter). 

Other firms, including Marathon Digital Holdings (MARA) and Riot Platforms, have also intensified Bitcoin purchases. Despite this trend, MicroStrategy remains the largest corporate Bitcoin holder, led by Michael Saylor’s aggressive accumulation approach.