MicroStrategy Share Expansion Approved To Fuel Aggressive Bitcoin Purchases

Key Takeaways

• MicroStrategy shareholders approved an increase in Class A common shares.
• Authorized preferred stock shares will also rise.
• The proposals passed with 56% approval, bolstered by CEO Michael Saylor’s 47% voting power.

MicroStrategy shareholders have approved a 30-fold increase in authorized Class A shares and a boost in preferred stock.

Shareholders Approve MSTR Share Expansion

The approved plan boosts the total number of authorized Class A shares from 330 million to a staggering 10.3 billion.

In addition, shareholders voted to increase the authorized preferred stock shares from 5 million to 1 billion.

These amendments will take effect after the company files the necessary documentation with the Delaware Secretary of State.

Both proposals passed with approximately 56% approval, largely due to Saylor’s 47% voting power.

The additional shares are intended for private Class A stock transactions, at-the-market equity offerings, and settling conversions or redemptions of convertible notes.

However, the company retains the option to refrain from selling all the newly authorized shares.

More Bitcoin Purchases Ahead

MicroStrategy has set an ambitious goal to raise $42 billion by 2027 through equity and convertible note offerings to fund its Bitcoin purchases.

The share expansion will clearly support the company’s ambitious goals.

MicroStrategy has already spent a hefty amount of its goal in the last three months.

The company has now purchased Bitcoin for 11 consecutive weeks, amassing a stash of 461,000 Bitcoins.

Before the shareholder vote, MicroStrategy announced spending $1.1 billion to buy more BTC.

What Happens Now

After the approval, MSTR stock  decreased by more than 8% on the Nasdaq before bouncing back to end the trading day down by 1.9% at $389.10 per share.

However, with this share expansion, MicroStrategy will join Nasdaq giants like Nvidia, Apple, Alphabet, and Amazon in the authorized share count.

The share increase will now place the company alongside tech leaders like Alphabet (300 billion authorized shares) and Nvidia (80 billion), surpassing Tesla’s share structure.

MicroStrategy also became a significant player in equity structure as shareholders voted to raise authorized preferred stock shares from 5 million to 1 billion.