MicroStrategy Shares Surge Ahead of Major Stock Split

By: Isha Das

MicroStrategy Shares Surge Ahead of Major Stock Split

MicroStrategy Incorporated has announced a 10-for-1 stock split for its class A and class B common stock, a strategic move aimed at making the company’s stock more accessible to a broader range of investors and employees. This stock split will be implemented through a stock dividend, whereby record holders as of August 1, 2024, will receive nine additional shares for each share held. The distribution of these additional shares is scheduled to occur after trading closes on August 7, 2024, with trading on a split-adjusted basis beginning on August 8, 2024. Importantly, the stock split will not alter the voting and other rights of shareholders.

The announcement has had a notable effect on MicroStrategy’s stock performance. Shares of the company saw a 5% increase in pre-market trading, bringing the share price to approximately $1,366. The enthusiasm around the stock split is likely tied to the company's enormous holdings in Bitcoin, which has seen significant appreciation over the past year. MicroStrategy remains the largest corporate holder of Bitcoin, with more than $13 billion worth of BTC in its treasury.

As the company continues its aggressive Bitcoin acquisition strategy, it's clear that the upcoming stock split serves multiple purposes. Besides broadening the shareholder base, it is also likely to maintain the bullish momentum triggered by the Bitcoin rally. For additional details on this development, visit the official MicroStrategy announcement.