Shares of MicroStrategy (MSTR) surged 5.08% in premarket trading on Tuesday, as the software company and largest corporate holder of Bitcoin (BTC) continued its aggressive Bitcoin accumulation and announced ambitious plans to raise $42 billion for further cryptocurrency purchases.
MicroStrategy revealed that it has acquired an additional 5,262 Bitcoins for $561 million in cash, bringing its total Bitcoin holdings to 444,262 coins worth over $42 billion at current prices. The average purchase price for the latest batch was $106,662 per Bitcoin.
The company also disclosed plans to hold a special shareholder meeting to vote on proposals that would significantly increase the number of authorized shares and preferred stock. This move aims to facilitate MicroStrategy's "21/21 Plan" - an initiative to raise $21 billion through equity financing and another $21 billion through debt issuance over the next three years, solely for the purpose of acquiring more Bitcoin.
If approved, the proposals would increase MicroStrategy's authorized Class A shares from 330 million currently to a staggering 10.33 billion, and its authorized preferred stock from 5 million to 1.005 billion shares. This would provide the company with greater flexibility to raise capital through various means and continue its aggressive Bitcoin buying strategy.
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