On Jan. 21, MicroStrategy (MSTR, Financial) will vote to boost its authorized Class A common share count from 330 million to 10.3 billion. The move is to raise $2 billion of funds from its preferred stock offering in order to secure money for its Bitcoin (BTC) acquisition strategy.
Led by co-founder and chairman Michael Saylor, the company has become a Bitcoin proxy, amassing almost $44 billion in Bitcoin holdings at the time of its most recent 10-week acquisition streak. Over the last year, MicroStrategy’s stock price has more than doubled, climbing 2,500%, while Bitcoin soared 800%.
A share increase and the issuance of preferred stock are planned and are expected to improve the company’s financial position and strengthen the focus on Bitcoin. MicroStrategy’s approach to using its cryptocurrency investments is crystallized in shareholders’ votes for raising the authorized stock shares dedicated to preferred stock from 5 million to 1 billion.
This article first appeared on GuruFocus.
