MicroStrategy Share Increase Approved to Fund Bitcoin Purchases

(Bloomberg) -- MicroStrategy Inc. shareholders voted for a 30 times increase to the number of authorized Class A common shares to help finance the company’s Bitcoin buying.

The enterprise software company turned leveraged Bitcoin proxy will increase its authorized Class A shares from 330 million to 10.3 billion as Chairman and co-founder Michael Saylor aims to increase the firm’s Bitcoin holdings. The vote was approved Tuesday, according to a recording of the shareholder meeting.

The share increase would give MicroStrategy the potential to have more shares outstanding than all but four of the five largest members of the Nasdaq 100 Index — Nvidia Corp., Apple Inc., Alphabet Inc. and Amazon.com Inc.

Shareholders also voted to increase the number of authorized shares of preferred stock from 5 million to 1 billion. The share increases will take effect once the company files the certificate of amendment with the secretary of state of the state of Delaware.

Both share increase amendments passed with around 56% of votes in favor of the proposals. The increases were expected to pass with Saylor holding about 47% of voting power.

MicroStrategy has aimed to raise $42 billion in capital through 2027 from equity and convertible note offerings to buy Bitcoin. Less than three months into the plan, the company only has $5.42 billion of equity offerings left.

The additional shares are planned to be used to finance private transactions of Class A stock, conduct sales of at-the-market equity offerings and to settle redemptions or conversions of convertible notes, according to a company proxy filing. But the company may choose to not sell all of the additional shares.

Before the shareholder vote on Tuesday, the so-called Bitcoin treasury company announced $1.1 billion of token purchases. MicroStrategy has bought Bitcoin for 11 consecutive weeks and now owns over $47 billion worth of Bitcoin — more than 2% of all the tokens that will ever exist.

Saylor has increased Bitcoin purchases since the election of President Donald Trump, who is expected to usher in a more friendly regulatory environment for the crypto industry. Ahead of Trump’s inauguration, Saylor attended the Crypto Ball in Washington, where he met with the president’s crypto czar as well as members of the incoming cabinet and Trump’s family, according to posts on X.