As a seasoned crypto investor with years of market fluctuations under my belt, I find MicroStrategy’s latest moves to be both audacious and strategic. Having witnessed the rollercoaster ride that is Bitcoin, I can appreciate the long-term vision and commitment demonstrated by this corporate giant.
MicroStrategy, a company that invests in Bitcoin for corporations, has scheduled a Shareholder Meeting to discuss plans centered around Bitcoin and simplify fundraising processes, which are collectively known as the “Bitcoin-focused 21/21 Plan”.
In a letter from the Executive Chairman, the company outlined three major agenda items to be decided during the meeting, which will be conducted virtually.
MicroStrategy’s New Proposals
The initial plan aims to revise the corporation’s Second Restated Charter of Incorporation, boosting the maximum count of Class A shares from 330 million to a staggering 10.33 billion. This adjustment could make it easier for the company to undertake capital expansion projects in the future.
This step includes raising the number of authorized preferred shares from 5 million to a staggering 1,005 million, as well as providing extended financing alternatives for crucial projects.
As a company analyst, I can express this point in a more personal and straightforward manner: To ensure consistency with our long-term Bitcoin strategy, I am working on proposing an amendment to our 2023 Equity Incentive Plan. This change will automatically grant equity awards to new directors joining the Board, thus aligning their compensation with MicroStrategy’s strategic approach towards Bitcoin.
Starting from October 2024, the company has garnered more than $2 billion by issuing equity and debt securities to boost its Bitcoin portfolio, thereby strengthening its standing as a pioneer in corporate investment in digital assets. As stated in the letter, the suggested modifications would offer the necessary agility to adjust our financial approach according to changing market trends, all while maintaining a consistent focus on our long-term objectives.
The business emphasized that these actions could boost the worth of shareholders. Moreover, they pointed out that expanding the number of shares wouldn’t lead to an instant decrease in value, but rather provide a structure for phased execution over time.
Aggressive Bitcoin Pile-Up
Yesterday’s news marks a significant milestone, as it follows the announcement made by MicroStrategy’s founder, Michael Saylor, about purchasing 5,262 Bitcoin units between December 16th and 22nd. This recent acquisition is valued at approximately $561 million, pushing the company’s total Bitcoin holdings to a staggering 444,262 BTC. The accumulated cost of these Bitcoins amounts to an impressive $27.7 billion, with an average price per Bitcoin of around $62,257.
It’s noteworthy that the company recently purchased Bitcoins for an average cost of approximately $106,662 each, which represents their highest-ever purchase price per coin.
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2024-12-24 21:26