Key Points
- MicroStrategy plans to increase its MSTR share count to 10 billion to boost its Bitcoin acquisition program.
- The move could potentially push the price of Bitcoin higher, but may also dilute the current MSTR’s value.
MicroStrategy, known for its Bitcoin corporate treasury, aims to up its MSTR share count to 10 billion. This move is intended to speed up its Bitcoin acquisition program.
The firm has informed shareholders of a special meeting through a filing with the US regulator, the Securities and Exchange Commission (SEC). The purpose of this meeting is to seek approval for the share increment.
Increasing Shares and Acquiring More Bitcoin
If the proposals receive approval, the class A common stock will be increased from 330 million to 10.3 billion shares. In the same vein, the preferred stock will be expanded from the current 5 million shares to 1 billion.
This would result in a total share count of over 11 billion. MicroStrategy believes this would aid in achieving its Bitcoin acquisition strategy known as the ’21/21 Plan.’
The ’21/21 Plan’ was first announced in October 2024. It aims to raise $42 billion in capital through equity issuance ($21B) and $21B debt instruments (convertible notes) over the next three years.
Joe Burnett, director of market research at Unchained, suggests that this move could push the price of Bitcoin higher. However, some have expressed concerns that this could dilute the current value of MSTR.
MicroStrategy’s Bitcoin Holdings
Since the announcement of the ’21/21 Plan’, MicroStrategy has acquired 192,042 Bitcoins. This includes the most recent bid of 5,262 BTC announced on December 23rd. The firm now holds 444,262 BTC, worth nearly $42 billion at the current price.
Following MicroStrategy’s latest BTC bid, MSTR’s value increased by 11%. However, the stock’s price has fallen by nearly 40% amid a correction from $108K to a low of $92K. Despite this, MSTR has seen 263% gains on a year-to-date (YTD) basis, compared to Bitcoin’s 112%.
