Key Points
- MicroStrategy plans to increase its MSTR share count to 10 billion to boost its Bitcoin acquisition program.
- If approved, the total share count will exceed 11 billion, facilitating the company’s ’21/21 Plan’ for Bitcoin acquisition.
MicroStrategy, known for being a pioneer in corporate Bitcoin treasury, has unveiled plans to increase its MSTR share count to a whopping 10 billion. This move is aimed at accelerating its Bitcoin acquisition program.
The firm has submitted a filing with the US Securities and Exchange Commission (SEC), informing shareholders of an impending special meeting to discuss and seek approval for the proposed share increment.
Implications of the Share Increment
Should the proposals receive approval, the class A common stock would see a significant increase from 330 million to 10.3 billion shares. Similarly, the preferred stock would be expanded from the current 5 million to 1 billion shares.
The company claims that this would bring the total share count to over 11 billion, which would greatly aid in the execution of its Bitcoin acquisition strategy, known as the ’21/21 Plan’.
MicroStrategy’s Bitcoin Acquisition Plan
The ’21/21 Plan’ was initially unveiled 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, has speculated that this move could potentially drive the Bitcoin price higher. However, some have expressed concerns that this could dilute the current value of MSTR shares.
Since the announcement of the ’21/21 Plan’, MicroStrategy has acquired a total of 192,042 Bitcoins, including a recent bid of 5,262 BTC announced on December 23rd. Currently, the firm holds 444,262 BTC, valued at nearly $42 billion.
Following MicroStrategy’s latest Bitcoin bid, MSTR experienced an 11% increase. However, the stock’s price has seen a nearly 40% decline amid Bitcoin’s correction from $108K to a low of $92K. Despite this, MSTR has seen a year-to-date (YTD) gain of 263%, more than double that of Bitcoin’s 112%.
MSTR has managed to defend the 50% Fib level and 50-day EMA confluence at press time at $323. However, any further Bitcoin correction could potentially decrease the stock’s value.