MicroStrategy Inc. ( MSTR ) announced a special shareholder meeting Monday to vote on proposals to support its ambitious $42 billion Bitcoin (CRYPTO: BTC) purchase plan.

What happened: In a 14A filing shared with the SEC, executive chairman Michael Saylor proposed increasing the company's authorized Class A shares from 330 million currently to 10.33 billion to facilitate future capital raising.

Additionally, he recommended increasing the number of authorized shares of preferred stock from 5 million to 1.005 billion.

Preferred stocks usually offer fixed dividends and rank higher than common stocks during asset liquidation.

See Also: North Korean Hackers’ Suspected Presence Triggers Over $500 Million In Outflows From Crypto Exchange

Saylor said that the two proposals would "support further implementation" of the 21/21 plan — a capital-raising initiative that aims to raise $21 billion through equity financing and $21 billion through fixed-income securities to purchase Bitcoin.

The MicroStrategy ( MSTR ) founder added that if implemented, the proposals would give the company "flexibility" to raise capital in a manner that is most advantageous under the prevailing market conditions.

Why It Matters: MicroStrategy ( MSTR ) has been on a Bitcoin buying spree, with the company's stockpile growing to 444,262 BTC, worth over $27 billion, after a fresh purchase of 5,262 BTC on Monday.

The playbook has become one of the hottest topics in capital markets in 2024, drawing praise and criticism in equal proportions.

Meanwhile, MicroStrategy ( MSTR ) investors have been laughing all the way to the bank, with the stock up about 380% year-to-date, outperforming the “Mag 7” businesses.

Price Action: At the time of writing, Bitcoin was exchanging hands at $94,216.84, down 1.16% in the last 24 hours, according to data from Benzinga Pro.

Shares of MicroStrategy ( MSTR ) plummeted 8.78% to $332.23 during Monday’s regular session but were up 1.35% in pre-market trading.

The stock has a consensus price target of $449.5 based on the ratings of 12 analysts, with an average price target of $546.67 between Bernstein, TD Cowen, and Barclays.

Image via Shutterstock

Read Next: 

Dogecoin ‘Parabolic Rally’ In 2025 Foreseen By Popular Analyst If ‘History Repeats’ Just Like In 2017, 2021