MicroStrategy Seeking Shareholder Approval To Expand Class A Stock To 10 Billion Shares - To Buy More Bitcoin

Michael Saylor, Chairman and controlling shareholder of MicroStrategy, continues to cement his status as one of Bitcoin’s most prominent advocates. Under his leadership, MicroStrategy is pushing boundaries with its aggressive Bitcoin acquisition strategy, and the company is now taking unprecedented steps to scale its vision.

In a recent preliminary proxy filing with the Securities and Exchange Commission (SEC), MicroStrategy seeks shareholder approval to significantly increase its authorized Class A common stock from 330 million shares to an unprecedented 10.33 billion shares. While this may sound extraordinary, it’s worth noting that other industry titans like Apple, Amazon, and Microsoft have millions—sometimes billions—of shares outstanding. Such moves allow these companies flexibility to raise capital, fund growth, and execute their strategies without requiring shareholder approval for every new issuance.

This is business as usual for major corporations. For example, Apple has over 15 billion shares outstanding, and Amazon operates with around 10 billion shares authorized. These figures demonstrate that MicroStrategy’s proposal is not unique but rather a step to align with practices that allow scalability and strategic growth.

The scale of this move reflects Saylor's aspiration to dominate the Bitcoin market. At the current stock price of $332.23, MicroStrategy's market value would balloon to $3.4 trillion, surpassing the estimated $1.9 trillion total market value of Bitcoin.

Saylor’s Grand Vision: $3 Trillion Market Cap and 3,000,000 Bitcoin

Saylor has openly discussed his long-term ambitions for MicroStrategy, stating that the endgame is capturing just 1% of the $300 trillion global fixed-income market. “If we can achieve that, we’re talking about a $3 trillion company valuation,” Saylor remarked. This bold target highlights his belief in Bitcoin as a superior store of value and a hedge against the instability of traditional financial systems.

Achieving such a valuation would enable MicroStrategy to accumulate more than 3,000,000 Bitcoin at an average price of $1 million per coin. While this may seem audacious, it underscores Saylor’s confidence in Bitcoin’s exponential growth potential and its ability to disrupt traditional asset classes like bonds and gold.

Saylor’s Strategy: Echoes of Carnegie and Rockefeller

Saylor’s calculated risk in Bitcoin mirrors the audacious bets made by industrial titans like Andrew Carnegie and John D. Rockefeller, who built their wealth by dominating key industries of their time—steel and oil, respectively. Carnegie revolutionized the steel industry by investing in vertical integration, while Rockefeller's Standard Oil controlled nearly all aspects of the oil supply chain. Both men recognized exponential growth opportunities in burgeoning markets and positioned themselves to extract outsized value.

Similarly, Saylor sees Bitcoin as an exponential growth asset, akin to steel in the Industrial Revolution or oil in the age of fossil fuels. Bitcoin, with its limited supply of 21 million coins and increasing global adoption, offers asymmetric returns for those willing to bet big early. Just as Carnegie and Rockefeller leveraged their industries’ unique dynamics to compound their wealth, Saylor is using MicroStrategy as a vehicle to capitalize on Bitcoin’s potential to become the global reserve asset.

Game Theory and Exponential Growth Assets

Saylor’s strategy is rooted in game theory and the power of exponential growth. Game theory suggests that when one player in a market takes a dominant position, others are incentivized to follow, either to compete or align with the leader. By acquiring over 439,000 Bitcoin—more than 2% of the total supply—MicroStrategy has established itself as a leader in corporate Bitcoin adoption. This move pressures other companies and institutions to consider Bitcoin as a treasury asset, creating a snowball effect that could further elevate Bitcoin’s price and utility.

Bitcoin’s exponential growth potential lies in its fixed supply and expanding network effects. As adoption grows among individuals, corporations, and governments, the asset's scarcity amplifies its value. Saylor’s bold bet positions MicroStrategy to benefit not just from price appreciation but from the broader network effects driving Bitcoin’s adoption. This is the equivalent of Rockefeller not just profiting from oil but shaping the infrastructure around its consumption.

MicroStrategy’s Bitcoin Journey So Far

MicroStrategy has been on an equity-issuance spree since late October, announcing plans to raise $21 billion through stock sales and bonds to fund Bitcoin purchases through 2026. To date, the company has already raised approximately $16 billion, using the proceeds to acquire 439,000 Bitcoin, worth an estimated $42 billion. This represents over 42% of its ambitious “21/21” plan to raise $42 billion for Bitcoin acquisitions over three years.

The company has executed this strategy much faster than anticipated, leveraging the premium at which its stock trades relative to Bitcoin. This premium, currently around two times, positions MicroStrategy to efficiently raise capital for its Bitcoin-focused initiatives.

What’s Next for MicroStrategy?

Shareholders will vote on the proposal to expand the authorized shares at a special meeting in 2025, with the exact date yet to be disclosed. The increase to 10.3 billion shares, along with a boost in authorized preferred shares from 5 million to 1 billion, aligns with the company’s ambitious plans to dominate Bitcoin acquisition.

This move could have cascading effects on the corporate world. Game theory implies that if MicroStrategy’s Bitcoin bet proves successful, other companies will be compelled to follow suit to avoid falling behind. The result could be a wave of corporate Bitcoin adoption, further driving up its value.

A Milestone Moment for Shareholders and Bitcoin Advocates

This proposal represents more than a capital-raising exercise—it marks a pivotal moment in MicroStrategy’s evolution. Inclusion in the Nasdaq-100 index has already increased the company’s visibility among investors, and the proposed share expansion could enhance liquidity while enabling the next phase of its Bitcoin-focused journey.

Michael Saylor’s vision is clear: to position MicroStrategy as the king of corporate Bitcoin holdings. Like Carnegie and Rockefeller before him, Saylor is placing a calculated bet on a transformative asset class, leveraging the power of exponential growth and game theory to compound wealth.

With over 42% of its $42 billion investment goal already achieved in just two months, the company is well on its way to redefining the relationship between public companies and digital assets. MicroStrategy isn’t just buying Bitcoin—it’s shaping the narrative of how corporations engage with this revolutionary technology.

Stay updated on MicroStrategy’s bold moves and their impact on the Bitcoin ecosystem with Bitcoin on Balance.