Michael Saylor’s Proposal To Increase MicroStratagy’s Share Count Approved By Shareholders — More Bitcoin Purchases On The Cards? – MicroStrategy (NASDAQ:MSTR)

MicroStrategy Inc. MSTR shareholders on Tuesday approved a proposal to increase the company’s authorized Class A shares by 30 times to support future Bitcoin BTC/USD acquisitions.

What happened: About 56% of votes were cast in favor of increasing the shares from the current 330 million to 10.33 billion, Bloomberg reported, citing the meeting’s recording. 

Investors also approved the proposal to increase the number of authorized shares of preferred stock from 5 million to 1.005 billion, reflecting a 201x increase. Preferred stocks usually offer fixed dividends and rank higher than common stocks during asset liquidation.

Notably, the proposals were put forward by the firm’s co-founder and executive chairman, Michael Saylor, who controls 47% of the voting power.

See Also: Trump Names Uyeda Acting SEC Chair, Regulators Get Ready For Crypto Makeover

Why It Matters: These proposals were intended to support MicroStarategy’s ambitious 21/21 plan, a capital-raising operation that seeks to generate $21 billion in equity financing and $21 billion in fixed-income securities to fund Bitcoin purchases.

As of this writing, the firm has $5.42 billion remaining under its equity offerings plan.

MicroStrategy has front-run corporate Bitcoin adoption, with the company’s stockpile growing to 461,000 BTC, worth $48.67 billion, after a fresh purchase of 11,000 BTC on Tuesday. The firm was sitting on unrealized Bitcoin gains of nearly 66%, according to BitcoinTresuries.net.

Price Action: At the time of writing, Bitcoin was exchanging hands at $105,605.91, up 4.04% in the last 24 hours, according to data from Benzinga Pro.

Shares of MicroStrategy closed 1.87% lower at $389.10 during Tuesday’s regular trading session.

The stock has a consensus price target of $449.5 based on 12 analyst ratings, with an average price target of $546.67 from Bernstein, TD Cowen, and Barclays.

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