MicroStrategy Shareholders Willing to Dilute Stake for More Bitcoin Purchases

MicroStrategy and its shareholders just can't get enough Bitcoin. In an effort for the company to acquire even more Bitcoin, MicroStrategy shareholders have approved an increase in the number of authorized Class A common shares.

The authorized shares will rise from 330 million to 10.3 billion, significantly expanding the company’s equity base, following a shareholder meeting on Tuesday in which 56% voted in favour, reflecting founder Michael Saylor's dominant 47% voting power. Shareholders also approved an increase in authorized preferred shares from 5 million to 1 billion.

This expansion allows MicroStrategy to surpass the share volumes of nearly all Nasdaq 100 Index leaders, except Nvidia Corp., Apple Inc., Alphabet Inc., and Amazon.com Inc.

MicroStrategy plans to $42 billion in capital through equity and convertible note offerings by 2027. The firm currently has $5.42 billion of equity offerings remaining.

The move is in line with Saylor's vision to expand MicroStrategy's Bitcoin reserve. Most recently MicroStrategy announced $1.1 billion worth of Bitcoin purchases following eleven weeks of consistently adding to its BTC reserves, which is now valued at over $47 billion, representing more than 2% of the total Bitcoin supply.

In October, MicroStrategy announced its plan to acquire Bitcoin with $42 billion in capital over three years through an at-the-market share issuance program and debt sales.

MicroStrategy's aggressive purchases also come as Donald Trump ushers in crypto-friendly regime. On Friday, Saylor met with Trump at the first-ever "Crypto Ball" ahead of the President's inauguration.