- MicroStrategy seeks approval for a 10 billion MSTR share count increase.
- MSTR’s 263% YTD gains more than doubled BTC’s 112%.
MicroStrategy, the pioneer of Bitcoin corporate treasury, plans to increase its MSTR share count to 10 billion to accelerate its BTC acquisition program.
In a filing with the US regulator, the Securities and Exchange Commission (SEC), the firm notified shareholders of a special meeting to seek approval for the share increment.
If the proposals are approved, the class A common stock would be increased from 330 million to 10.3 billion shares. Similarly, the preferred stock would be expanded to 1 billion from the current 5 million shares.
This would bring total share counts to over 11 billion, which the company said would help achieve its BTC acquisition strategy dubbed the ‘21/21 Plan.’
MicroStrategy to buy more BTC?
The plan was initially announced in October 2024. It targets $42 billion in capital raised through equity issuance ($21B) and $21B debt instruments (convertible notes) in the next three years.
Part of the board’s statement on the recent share count increment proposal read,
“We are seeking stockholder approval to increase the number of authorized shares of Preferred Stock so that we may expand the types of securities we offer into the market, to execute on our business strategy, including as part of our 21/21 plan, and/or engage in other strategic activities without using cash or Class A Stock.”
Reacting to the update, Joe Burnett, director of market research at Unchained, claimed that the move could push the BTC price higher. He said,
“MSTR wants to issue 10 billion more shares. At current market prices, that would be $3.3 trillion—or 36 million Bitcoins…I’m guessing the price of Bitcoin will be going much higher.”
However, others were concerned the move could dilute the current MSTR’s value.
Since the 21/21 Plan announcement, MicroStrategy has acquired 192,042 Bitcoins, including the latest bid of 5,262 BTC announced on the December 23rd. The firm now holds 444 262 BTC, worth nearly $42 billion per current price.
MSTR pumped 11% following MicroStrategy’s latest BTC bid. However, the stock’s price has declined nearly 40% amid BTC correction from $108K to a low of $92K. But it had 263% gains on a year-to-date (YTD) compared to BTC’s 112%.
Source: MSTR, TradingView
Although MSTR defended the 50% Fib level and 50-day EMA confluence at press time at $323; any extra BTC correction could lower the stock’s value.
