MicroStrategy, a leading business intelligence firm and significant holder of Bitcoin, has announced a major 10-for-1 stock split scheduled to take effect on August 1st. This decision, facilitated through a stock dividend, aims to democratize access to MicroStrategy shares for a wider range of investors and employees, as outlined in a recent company statement.
Following the split, holders of MicroStrategy’s class A and class B common stock will receive nine additional shares of the respective class. This maneuver effectively increases the number of outstanding shares without altering the voting rights of existing shareholders. The distribution of additional shares will occur after the close of trading on August 7th, with trading on a split-adjusted basis commencing at market open on August 8th.
A stock split is strategically designed to enhance liquidity and reduce the share price, thereby making individual shares more affordable to retail investors. Despite the decrease in share price, the company’s overall market capitalization remains unchanged, which often leads to improved market perception and increased investor interest.
MicroStrategy’s stock has recently demonstrated strong performance, showing a 6.4% increase in pre-market trading to $1,389 per share, according to trading data. While the stock has experienced a 17% decline over the past month, it has posted significant gains of 89% year-to-date.
In addition to the stock split, MicroStrategy has continued its aggressive acquisition of Bitcoin, purchasing an additional 11,931 BTC for approximately $786 million last month. This acquisition, at an average price of $65,883 per Bitcoin, has increased MicroStrategy’s total holdings to 226,331 BTC, valued at approximately $13.4 billion. The company’s Bitcoin acquisitions have been made at an average price of $36,798 per Bitcoin, totaling around $8.33 billion including fees and expenses.
MicroStrategy’s strategic initiatives underscore its commitment not only to traditional financial markets but also to pioneering developments in the cryptocurrency space. These actions position MicroStrategy as a leader in leveraging digital assets for strategic growth and innovation.
