MicroStrategy files a preliminary notice with the SEC to hold a shareholder vote for several items, including whether to increase authorized shares of common stocks and preferred shares from millions to billions.
MicroStrategy, the largest corporate holder of Bitcoin (BTC) to date, plans to conduct a meeting of shareholders. According to the preliminary notice filed to the SEC, MicroStrategy plans to have the meeting sometime in early 2025, though the exact date and time has yet to be determined.
The meeting will be held on a live webcast which can only be accessed by MicroStrategy stockholders via a website URL.
The purpose of the shareholder meeting is to vote on several items, two of them will determine the number of issued authorized shares of the company’s capital stock in order to reach the company’s three-year goal. Known as the 21/21 plan, MicroStrategy aims to raise $21 billion of equity capital and $21 billion of fixed-income instruments, which would equal to $42 billion in capital.
“The proposals we are asking you to consider reflect a new chapter in our evolution as a Bitcoin Treasury Company and our ambitious goals for the future,” said Michael Saylor, the Chairman of MicroStrategy.
First, shareholders are expected to vote ‘yes’ or ‘no’ on whether to increase the number of authorized shares of class A common stock from 330 million shares to 10.33 billion shares. Each share unit is valued at $0.001. Next, shareholders will vote on whether to approve of an increase in the number of authorized shares of preferred stock from 5 million shares to more than 1 billion shares.
Not only that, MicroStrategy shareholders are also going to vote on whether to provide automatic equity award grants to new members of the company’s Board of Directors upon their appointment.
Lastly, shareholders will approve or reject proposals to adjourn the Special Meeting if necessary to solicit additional proxies if the number of votes fail to reach the necessary threshold.
Previously, MicroStrategy added 5,262 Bitcoin to its company reserves. The recent purchase puts the Virginia-based software firm’s total BTC holdings to 444,262 BTC.
