Microstrategy Stock Holders To Be Asked To Approve Increase In Authorized Class A Shares From 330 Million Shares To 10.33 Billion Shares

Reuters2024-12-24

  • Microstrategy: At a Special Meeting, Stock Holders to Be Asked to Approve Increase in Authorized Class a Shares from 330 Million Shares to 10.33 Billion Shares

  • MicroStrategy: At Special Meeting, Stock Holders to Be Asked to Approve Raise in Authorized Shares of Preferred Stock from 5 Million to 1.01 Billion Shares

  • MicroStrategy: Do Not Currently Have Any Specific Plans, Proposals to Issue Any of Proposed Additional Authorized Shares of Preferred Stock

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Comments

  • Basics101
    2024-12-24
    Basics101
    It's not like they are buying the dip for BTC last purchase was at 106000 already down over 10% (that's 51million loss from one trade). if BTC drops another 30-35% (there avg is around $62k ) we revisit a crash like FTX, Celsius, Terra etc etc all over again, except this time it's going to be wiping superfunds, leverage BTC and Supermicro ETFs and so on! They don't own the BTC it's a loan of a loan of a loan then a bunch of investor IOU's! And the company makes no money!
    • Dhana Kuber: 
      Mstr has a long term plan and even a short to medium term plan. It is consolidating at the moment and it's BTC assets are much more potent than lots of the other companies that doesn't have any assets to back up its stock.
    • BTC_Sandy: 
      It’s safer to buy $iShares Bitcoin Trust(IBIT)$ directly than buy this one
  • Reglloyd
    2024-12-24
    Reglloyd
    By leveraging both equity and convertible debt while capitalizing on its equity premium, the company has managed to grow its bitcoin holdings at a faster pace than its share dilution.
  • Reglloyd
    2024-12-24
    Reglloyd
    This is correct, share dilution will take place , however because Microstrategy uses these shares to raise capital /debt / loans in this situation we know the game plan, to buy more Bitcoin. Secure more loans at possibly zero % interest or below 1 %. Share dilution is the reduction of the percentage of equity in a company through issuing additional stocks that'll be put up for sale. The dilution occurs when existing shareholders' percentage of equity in a company is reduced, enabling the freed-up stock to be used for raising capital. When a company asks shareholders to approve an increase in the number of class A shares, it means the company is planning to issue new shares, which can lead to share dilution. Share dilution occurs when the total number of outstanding shares increases, which
    • glitzii: 
      Great insights on share dilution! [Smart]
    • cheeryk: 
      It's interesting how dilution can actually be a strategy if managed well.
  • Isleigh
    2024-12-24
    Isleigh
    Any thoughts on this? Share dilution?
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