MicroStrategy convenes an extraordinary shareholders' meeting, planning to increase its share capital by 22 times to ensure the realization of the BTC strategy

Self-proclaimed BTC development company MicroStrategy announced that it will convene a special shareholder meeting to allow shareholders to vote on several key proposals aimed at accelerating the 21/21 plan, simplifying fundraising, and aligning director compensation with the company's BTC strategy.

MicroStrategy proposes to increase its share capital by as much as 2,200%.

MicroStrategy launched the '21/21 Plan' in October 2024, aiming to raise $42 billion within three years, including $21 billion in equity capital and $21 billion in fixed income capital. To accelerate the realization of this goal, MicroStrategy announced the convening of a special shareholders' meeting, with the following proposal regarding the issuance of new shares:

The authorized Class A shares will be increased from 330 million shares to 10.33 billion shares to support future fundraising.

Increase the authorized preferred stock from 5 million shares to 1.005 billion shares to expand financing options

If both proposals are approved, the capital of MicroStrategy will increase from the original 500 million shares to 11.5 billion shares, an increase of up to 2,200%.

Note: Preferred stock usually has voting rights, fixed dividends, and priority in liquidation.

Revise the equity incentive plan to provide automatic equity rewards for new directors

In addition, MicroStrategy has recently welcomed three new members to its board of directors - Brian Brooks, Jane Dietze, and Gregg Winiarski. These directors have rich experience and expertise in digital assets, capital markets, and regulatory affairs. Proposal 3 of this special meeting will revise the 2023 stock incentive plan to provide automatic equity rewards for new board members.

MicroStrategy states that the grants of incentives are discretionary, but have announced a maximum of $3 million for options and a maximum of $3 million for RSUs.

Note: Restricted Stock Units (RSUs): A vesting period is typically set at the time of grant, during which the beneficiary is required to continue to serve the company. Only after the vesting period has expired will the RSUs convert into actual company stock.

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