MicroStrategy (MSTR) is on track for a dramatic shift, seeking approval to increase its authorized Class A shares from 330 million to 10.3 billion.
If approved, MicroStrategy will be inducted into the Nasdaq’s elite—Nvidia, Apple, Alphabet, and Amazon—in authorized shares.
This move, set to be voted on Jan. 21, aligns with the company’s overall Bitcoin (BTC) strategy—which aims to raise $42 billion over the next three years.
CEO Michael Saylor, who controls 47% of the voting power, is expected to ensure the proposal’s success. In terms of outstanding shares, the software company will be positioned alongside market giants like Amazon and Alphabet.
The share increase follows MicroStrategy’s October 2024 announcement, where it planned to raise $42 billion to buy Bitcoin.
Surprisingly, since the announcement, the company has increased its Bitcoin holdings to over $44 billion with consistent weekly purchases even in times of market turmoil.
While the prospect of diluting shares raises concerns, especially regarding earnings per share and voting rights, MicroStrategy’s commitment to Bitcoin remains at the forefront of its business plan.
The company’s authorized shares are not automatically issued, with a significant gap between authorized and outstanding shares.
For context, Alphabet holds 300 billion authorized shares and Nvidia 80 billion, underscoring the scale of MicroStrategy’s proposed expansion.
If the proposal passes, MicroStrategy could rank among the Nasdaq’s largest companies by share count, surpassing tech giants like Microsoft, which has 300 billion authorized shares.
Even Tesla, with half the number of authorized shares as MicroStrategy’s proposal, would be dwarfed by the software company’s potential share issuance.
However, shareholders will also vote on a proposal to raise the number of authorized preferred stock shares from 5 million to 1 billion, further complicating the company’s equity structure.
If approved, this would bring MicroStrategy’s authorized stock totals on par with tech behemoths and well above rivals like Tesla.
MicroStrategy’s stock performance is closely tied to Bitcoin’s price movements.
Recently, the company saw its share price drop in line with Bitcoin’s dip. However, with Bitcoin once again approaching the $100,000 mark amid broader crypto market volatility, MicroStrategy’s stock is on the rise.
As of Jan. 15, 2025, the company’s stock gained 4.2% when Bitcoin surged toward $100,000. Since January 2024, MicroStrategy’s stock has skyrocketed 610%, reaching a price of $342.17 per share, with a market capitalization of $84.1 billion.
With 450,000 BTC in its portfolio, MicroStrategy remains the largest corporate holder of Bitcoin. The asset’s performance continues to play a significant role in the company’s stock valuation.