Software company MicroStrategy recently held a special shareholder meeting to vote on expanding its stock issuance program, aiming to raise additional capital for purchasing more Bitcoin (BTC). This strategic move aligns with the firm's aggressive cryptocurrency investment strategy initiated in 2020.
Key Amendments Proposed
- A-Class Common Stock Increase:
Seeking to raise authorized shares from 330 million to 10.33 billion to facilitate future equity offerings. - Preferred Stock Expansion:
Proposing to increase authorized preferred shares from 5 million to over 1 billion for enhanced financial flexibility.
The 21/21 Plan: MicroStrategy's Bitcoin Acquisition Strategy
Announced in October, MicroStrategy's ambitious 21/21 Plan outlines a three-year roadmap to:
- Purchase $42B worth of Bitcoin (420,000 BTC at current prices)
- Raise $21B through stock sales** and **$21B via fixed-income securities
"Our execution pace has significantly outpaced initial projections" — MicroStrategy SEC Filing
Recent Bitcoin Purchases (December Highlights)
- Acquired 42,162 BTC (~$4B at current rates)
- Total holdings: 444,262 BTC ($43.5B market value)
- Average purchase price: $62,257 per BTC
Financial Performance and Market Impact
- 130B raised via equity offerings since October
- 30B generated through convertible notes
- NASDAQ stock surge: +422% YTD (attributed to BTC strategy)
Bitcoin Investment ROI
- Current unrealized gain: 57% ($277B total acquisition cost)
- Projected annual yield (2025-2027): 6%-10%
Upcoming Milestones
- Special shareholder meeting date: To be announced
- Next earnings report: February 2, 2025
FAQ: MicroStrategy's Bitcoin Strategy
Why is MicroStrategy buying so much Bitcoin?
MicroStrategy views Bitcoin as a superior store of value compared to traditional assets, adopting it as their primary treasury reserve asset to hedge against inflation and currency devaluation.
How does the 21/21 Plan work?
The plan combines equal parts equity financing (stock sales) and debt financing (corporate bonds) to systematically acquire Bitcoin while maintaining shareholder value through diversified funding sources.
What's the average purchase price of MicroStrategy's BTC?
The company's volume-weighted average stands at $62,257 per Bitcoin across all acquisitions.
How does this affect NASDAQ investors?
Shareholders benefit from indirect Bitcoin exposure through MicroStrategy's equity, which has outperformed major indices due to BTC price appreciation.
Where does MicroStrategy store its Bitcoin?
All holdings are stored in enterprise-grade cold wallets with multi-signature security protocols and institutional custody partners.
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