MicroStrategy’s board of directors approved a 10-for-1 stock split for both its class A and class B common stock. This move aims to make the company’s stock more accessible to investors and employees.
This stock split involves issuing ten shares for every one share owned, though each new share will be worth one-tenth of the original price. After the announcement, MicroStrategy’s shares (MSTR), a company also known for its significant Bitcoin (BTC) investments, rose by 7.5% in intra-market trading.
The stock split will be executed through a stock dividend. Shareholders on record as of August 1, 2024, will receive nine additional shares for each share they own. The new shares will be distributed after the close of trading on August 7, 2024, and trading on a split-adjusted basis will start on August 8, 2024.
This stock dividend will not affect shareholder voting rights or other privileges.
Bitcoin Purchases
MicroStrategy’s strategy of purchasing Bitcoin as a hedge against the devaluation of its reserve assets has been well-received by investors. This tactic has bolstered the stock’s appeal within the crypto community.
Since starting its Bitcoin acquisition in 2020, MicroStrategy has become the largest corporate holder of Bitcoin. This shift has significantly boosted the company’s stock value, which is up 107% in 2024, compared to Bitcoin’s roughly 40% increase over the same period.
On June 20, MicroStrategy purchased 11,931 BTC for $786 million in cash "using proceeds from convertible notes," said the firm’s founder, Michael Saylor.
At the time of writing, MSTR is up 7.3% today and is priced at $1401.06 per share. The company reached an all-time high of $1999.9 in March.
