MicroStrategy Announces Shareholder Vote on Increasing Bitcoin Holdings
MicroStrategy plans to raise capital and align leadership with its Bitcoin strategy.
The company’s stock is down despite its large Bitcoin holdings.
MicroStrategy, a business intelligence company, revealed its plan to hold a special meeting with its shareholders to approve some proposals that seek to strengthen the company’s Bitcoin-centered approach under its proposed “21/21 plan.” The company is enhancing its financial freedom and synchronizing the directors’ remuneration as it concentrates on acquiring more Bitcoin and related endeavors.
Proposals to Expand Capital-Raising Capacity
As of 31 December 2014, the authorized number of Class A shares was 330 million, but the firm is asking for the green light to issue up to 10.33 billion. That would greatly improve MicroStrategy’s prospects for financing potential future investments such as extra bitcoin purchases, adding to its strengths.
Also, it has been recommended that the company increase its authorized preferred shares from 5 million to 1.005 billion. The message for the firm is clear. By expanding its sources of funds, the company will be able to sustain its torrid pace of buying Bitcoin while considering other strategic, long-term goals.