- Microstrategy bought over half a billion dollars in BTC near its all-time high and plans to keep purchasing
- The 21/21 Plan aims to expand BTC holdings by $42 billion over three years through equity sales and fixed-income securities
- The company seeks shareholder approval to increase authorized shares, potentially accelerating its fundraising target
Yesterday we reported that Microstrategy bought over half a billion dollars in BTC when the currency traded near its all-time highest. Only a day later, the company run by Michael Saylor is tripling down over its Bitcoin plan, making it clear that they have no intention of halting its recurring BTC purchases any time soon.
On December 23, Microstrategy filed a motion to the SEC to seek approval from its shareholders to boost further its Bitcoin acquisition plan. Known as the “21/21 Plan”, this strategy aims to significantly expand the company’s BTC holdings by $42 billion over the next three years.
Now, Microstrategy will look to receive the blessing from its shareholders to upgrade the 21/21 Plan even beyond its initial target. The company intends to augment its limit of authorized shares for Class A stock options from 330 million shares to 10.33 billion shares.
Also, Microstrategy will look to expand preferred stock limits from 5 million shares to upwards of 1 billion.
This is directly significant to the firm’s BTC ambitions as the 21/21 Plan involves raising half of the total intended amount via equity sales, while the other half by fixed-income securities. In simpler terms, this means Microstrategy needs to sell more shares to raise money. By increasing the number of shares they can sell, they can potentially reach their fundraising target quicker.
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