MicroStrategy Seeks Share Expansion to Fund $42 Billion Bitcoin Strategy

The company proposes a massive increase in authorized shares to support its aggressive Bitcoin acquisition plan, raising both praise and concerns over risks.

MicroStrategy plans to increase its authorized Class A shares from 330 million to 10.33 billion and preferred shares from 5 million to 1.005 billion to fund Bitcoin purchases.
The proposal supports the company's '21/21' plan, aiming to raise $21 billion through equity and $21 billion through fixed-income securities for Bitcoin acquisition.
MicroStrategy recently purchased 5,262 Bitcoin for $561 million, bringing its total holdings to 444,262 BTC, valued at $42 billion at current prices.
The strategy has drawn criticism for its reliance on leverage and the risks of share dilution, though proponents highlight its potential for high returns if Bitcoin prices rise.
MicroStrategy's stock has surged over 400% in 2024, but analysts warn of volatility tied to Bitcoin's price movements and the company's aggressive financial maneuvers.