MicroStrategy (NASDAQ:MSTR) could soon boost its Bitcoin (BTC) holdings if shareholders approve a proposal toincrease the company’s authorized Class A common shares from 330 million to 10.3 billion. The vote, set for Jan. 21, aims to raise $2 billion through a preferred stock offering to support the company’s Bitcoin acquisition strategy.
CEO Michael Saylor, a longtime Bitcoin advocate, hinted at further purchases, sharing a cryptic post on X that read, Things will be different tomorrow, alongside a company portfolio tracker graph. As of Jan. 19, MicroStrategy’s Bitcoin holdings stand at 450,000 BTC, valued at $47.2 billion, according to Bitcoin.com. Despite concerns about dilution, analysts expect the proposal to pass, with Saylor controlling 47% of the voting power. If approved, MicroStrategy could have more shares outstanding than NVIDIA (NVDA), Apple (AAPL), Alphabet (GOOGL), and Amazon (AMZN).
MicroStrategy has committed to raising $42 billion over three years to fund Bitcoin purchases. With just $6.5 billion remaining in its current equity offerings, the proposed share increase could be essential to maintaining its aggressive crypto strategy.
This article first appeared on GuruFocus.
