MicroStrategy Shareholders Approve Significant Share Increase for Bitcoin Purchases

Key Highlights:

* MicroStrategy shareholders voted to increase the company's authorized Class A common shares by 30 times.
* The move is aimed at financing the company's aggressive Bitcoin acquisition strategy.
* MicroStrategy's Bitcoin holdings now exceed $47 billion, representing over 2% of all Bitcoin in circulation.

MicroStrategy, Inc. (MSTR) announced that its shareholders have approved a 30-fold increase in the number of authorized Class A common shares. This decision will facilitate the company's ongoing Bitcoin purchasing initiatives.

The authorized Class A share count will rise from 330 million to 10.3 billion, providing MicroStrategy with the potential to surpass the outstanding shares of all but four companies in the Nasdaq 100 Index. The move is expected to bolster the company's ability to raise capital through equity and convertible note offerings.

MicroStrategy, which has transformed into a leveraged Bitcoin proxy, aims to acquire $42 billion in Bitcoin by 2027. Despite a slow start, the company has already purchased over $47 billion worth of Bitcoin, accounting for over 2% of the total Bitcoin supply.

The company intends to utilize the additional shares for various purposes, including financing private transactions, equity offerings, and settling convertible note redemptions or conversions. However, MicroStrategy may not issue the entire amount of authorized shares.

The share increase was approved by approximately 56% of shareholder votes, with MicroStrategy Chairman and Co-Founder Michael Saylor holding a significant portion of the voting power. Saylor's ongoing bullish stance on Bitcoin has been driven in part by his expectations of a more favorable regulatory environment under President Donald Trump.

Despite Trump's recent executive orders, none have specifically addressed cryptocurrencies. This has led to some volatility in crypto-related stocks, including MicroStrategy, which experienced a decline on Tuesday. However, the company's shares remain up over 28% year-to-date, while Bitcoin has gained 9.5% over the same period.