MicroStrategy, the leading corporate Bitcoin holder, has proposed a significant increase in its authorized shares to support its aggressive Bitcoin acquisition strategy. The company plans to expand its Class A common shares from 330 million to 10.33 billion and its preferred shares from 5 million to 1.005 billion, according to a proxy statement filed with the SEC.
The proposed share increase is integral to MicroStrategy’s “21/21” plan, a three-year initiative targeting $42 billion in capital—split evenly between equity and fixed-income instruments like debt, convertible notes, and preferred stock. The capital will primarily fund future Bitcoin purchases.
Other proposals include a new equity incentive plan for automatic equity awards to incoming directors. In line with its expansion, MicroStrategy recently added Brian Brooks, Jane Dietze, and Gregg Winiarski to its board, increasing its members from six to nine. Brooks, a former Binance CEO, and Dietze, a Galaxy Digital board member, bring notable crypto expertise to the company.
The exact date for the special stockholder meeting to vote on these proposals has not been set, but it is expected in 2025.
MicroStrategy’s Bitcoin holdings recently grew to 444,262 BTC after acquiring 5,262 BTC for $561 million at an average price of $106,662 per Bitcoin. However, its stock price fell 8.78% on Monday to $332.23, even as it remains up 450% year-over-year. Bitcoin itself traded down 1.6% to $93,932.