MicroStrategy Targets Complete Bitcoin Ownership: Saylors Master Plan
- MicroStrategy plans to increase authorized shares to potentially buy all global Bitcoin.
- The company has already acquired over 444,000 BTC worth $43.5 billion.
- A special shareholders meeting will finalize the proposed equity-issuance plan.
MicroStrategy, led by Chairman Michael Saylor, has an audacious plan to potentially dominate the global Bitcoin market. The company filed a proposal with the U.S. Securities and Exchange Commission (SEC) seeking approval to increase its authorized Class A common shares from 330 million to 10.33 billion.
This would hypothetically pave the way for MicroStrategy to buy all outstanding Bitcoin at their current share prices of around $95,100 per coin. MicroStrategy has already accumulated more than 444,000 BTC in its treasury, which is currently worth close to $43.5 billion and makes it the largest corporate holder of Bitcoin in the world.
And the companys aggressive acquisition of Bitcoin has been funded through ongoing capital-raising activities. Since the release of MicroStrategys three-year 21/21 Plan back in October, it raised $13 billion from various stock issuances and an additional $3 billion in the issuance of convertible bonds.
The proceeds from such efforts have always been reinvested to buy Bitcoin, a fact that proves Saylor believes in the long-term value of Bitcoin.
Shareholder Meeting to Shape Bitcoin Strategy
MicroStrategy has called a special shareholder meeting to authorize an equity issuance plan; that is, in view of a recent SEC proxy filing, the virtual meeting intends to detail critical proposals for the solicitation of shareholder approval for growing its stock and preferred stock. If approved, the new share structure would give MicroStrategy significant financial flexibility to continue its Bitcoin acquisition spree.
The proxy filing also reaffirms the commitment of the company to implement its 21/21 Plan more quickly than initially envisioned, which is targeted at raising $42 billion, split equally between equity sales and fixed-income instruments, to finance its Bitcoin purchases. Also, the meeting will consider amendments in the 2023 Equity Incentive Plan to adequately compensate new board members guiding this lofty dream.
Bitcoin Strategy Driving MicroStrategys Growth
The stock of MicroStrategy has jumped more than 422% year-to-date, primarily because investors believe in the firms Bitcoin-centric approach. The strategy utilizes the premium valuation of the firms stock to raise capital for continuous BTC acquisitions.
With a reported yield on BTC of 17.8% and plans for annual yields between 6% and 10% through 2027, MicroStrategy positions itself both as a software firm and as a dominant Bitcoin treasury entity.
While the date for this special meeting has not been announced, its outcome will have a strong bearing on MicroStrategys journey to plunge deep into the Bitcoin market. In the event of yes votes for each of these proposals, this company will be armored financially in such a way as to reshape Bitcoin ownership across the globe.
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Text source: TronWeekly
