MicroStrategy shareholders have voted to increase the number of authorized Class A common stock and preferred stock, paving the way for the company to continue its aggressive bitcoin acquisition strategy. The move, approved on Monday, comes on the heels of the company’s announcement earlier this week of yet another substantial bitcoin purchase.
The decision reinforces MicroStrategy’s commitment to its ambitious “21/21 plan,” unveiled last October. This plan outlines the company’s intention to raise $42 billion – $21 billion in equity and $21 billion in fixed-income securities – to bolster its bitcoin treasury reserve. As of January 20th, approximately $5.42 billion worth of shares remained available for sale under this plan.
The shareholder vote comes just a day after MicroStrategy revealed it had acquired an additional 11,000 bitcoins for approximately $1.1 billion, at an average price of $101,191 per bitcoin. This latest purchase brings the company’s total bitcoin holdings to a staggering 461,000 BTC, currently valued at over $48 billion.
Despite the positive news regarding the stock authorization, MicroStrategy’s stock (MSTR) was trading down 4.5% at publication time, mirroring a broader downturn in the cryptocurrency market, with bitcoin itself down approximately 3%.
This continued investment in bitcoin underscores MicroStrategy’s unwavering belief in the cryptocurrency’s long-term potential. The company, originally known for its business intelligence software, has increasingly become synonymous with its bitcoin holdings under the leadership of CEO Michael Saylor, a prominent bitcoin advocate. While the strategy has garnered both praise and criticism, the shareholder vote indicates continued support for MicroStrategy’s bold bet on the future of digital currency.
