MicroStrategy Announces Special Shareholders Meeting to Buy More Bitcoin

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As a seasoned analyst with years of market observation under my belt, I find MicroStrategy’s decision to further invest in Bitcoin and seek shareholder approval for capital-raising measures intriguing. The company’s commitment to its 21/21 plan, particularly the alignment of director compensation with its Bitcoin-centric approach, speaks volumes about CEO Michael Saylor’s dedication to this strategy.

MicroStrategy, a business intelligence company, is deepening its commitment to its Bitcoin strategy by exploring additional funding methods for purchasing more BTC. This move has led them to announce a shareholder meeting where they will present proposals aimed at progressing the 21/21 plan. The aim is to strengthen the firm’s ability to raise capital and align director compensation with their Bitcoin-focused approach.

MicroStrategy Holds A Special Meeting With Shareholders

Following my announcement of a significant $516 million Bitcoin acquisition earlier this week, MicroStrategy has disclosed its intention to convene a shareholders’ meeting to deliberate on additional financial strategies and potentially expand our Bitcoin holdings even more. In line with our 21/21 vision, we are aiming to amplify our capacity for capital accumulation further. Here are some of the key proposals we have put forth.

  1. Increase in Class A Shares: The company seeks approval to raise the number of authorized Class A shares from 330 million to 10.33 billion, enabling more flexibility for future capital-raising efforts.
  2. Expansion of Preferred Shares: The authorized preferred shares would increase from 5 million to 1.005 billion. It will help in broadening financing options to support strategic initiatives.
  3. Amendment to Equity Incentive Plan: Proposed changes to the 2023 Equity Incentive Plan include automatic equity awards for newly appointed directors. This will ensure alignment with the company’s Bitcoin-focused vision.

Michael Saylor’s dedication towards MicroStrategy’s Bitcoin-focused approach is unwavering, as evident by the company amassing a total of 439,000 Bitcoins over the past four years, which currently holds an estimated value of around $42 billion. Furthermore, this strategic move has not only boosted MicroStrategy’s valuation but catapulted it to $82 billion – a staggering 80-fold increase since the company first adopted its Bitcoin strategy in 2020.

Through a significant buildup, MicroStrategy now ranks as the fourth-biggest Bitcoin owner, trailing only behind Bitcoin creator Satoshi Nakamoto, the BlackRock Bitcoin ETF (IBIT), and digital asset exchange Binance in terms of holdings.

MSTR Stock on Downward Trajectory Despite Nasdaq 100 Inclusion

Despite being part of the Nasdaq 100 Index as of December, MicroStrategy’s stock (MSTR) has continued to trend downwards. On Monday alone, its price dropped by 8.78%, reaching $332 levels. This decline has resulted in a weekly loss of 19% and a monthly loss of 17.65%. Since hitting an all-time high of $472 in November, MSTR stock has decreased by 30%. However, it’s important to note that it has still seen an impressive increase of 384% since the start of 2024.

Michael Saylor also remains hopeful of growth during the Donald Trump administration tenure as he proposing a strategic Bitcoin reserve to help the US pay its $36 trillion national debt. Commenting on the Republican win, Saylor said:

Bitcoin is experiencing a strong upward trend, driven by favorable conditions, and it’s likely that other digital assets will follow suit. Taxes are becoming less burdensome, with discussions about capital gains taxes and wealth taxes no longer on the agenda. The regulatory environment towards banks interacting with Bitcoin has significantly improved.

After hitting an all-time high of $108,000 last week, the price of Bitcoin has faced heightened selling activity. Over the past day, BTC has dipped another 2%, pushing its weekly losses to 11.52%. It appears that Bitcoin could potentially fall further to around $90,000. Data from Coinglass shows a total of $65 million in Bitcoin liquidations, with $45 million coming from long positions.

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2024-12-24 10:04