MicroStrategy shareholders will vote on plan to increase stock issuance on January 21

PANews, January 17: According to Bloomberg, MicroStrategy Inc.’s Michael Saylor may soon own nearly as many common shares as market giants Amazon.com Inc. and Alphabet Inc.’s outstanding shares to fund the company’s large-scale Bitcoin purchases. action. Analysts expect MicroStrategy to easily pass a company-sponsored proposal to increase the number of authorized Class A common shares from 330 million to 10.3 billion when shareholders vote on January 21. Saylor controls about 47% of the voting rights. That would put MicroStrategy on track to have more shares outstanding than every company in the Nasdaq 100 except Nvidia, Apple, Alphabet and Amazon. The company's shareholders are also expected to pass an amendment on January 21 to increase the number of authorized preferred shares from 5 million to 1 billion. According to the proxy document, MicroStrategy plans to use the additional shares to fund private transactions of Class A shares, conduct a market-for-market equity offering and settle redemptions or conversions of convertible notes.

Michael Lebowitz, portfolio manager at RIA Advisors, said that while additional stock issuances are not unusual, MicroStrategy's plan to significantly increase the number of shares at once would be unique. For a share increase amendment to pass, approval must be obtained from the holders of a majority of the voting rights of all outstanding shares of common stock entitled to vote. The shareholders' meeting will be held on Tuesday, January 21, at 10 a.m. New York time.