MicroStrategy’s Board of Directors Approves Dramatic 10:1 Stock Split
Microstrategy has confirmed it is doing a 10-for-1 split, giving current shareholders nine more shares for every share they currently own. It makes the company's shares affordable and accessible.
The board of directors of MicroStrategy, one of the world's largest business intelligence firms, today announced a 10-for-1 stock split. This interesting announcement shows that the company bought 11,000 BTC last month for about $786 million, which made its total holdings reach a record high. The stock price has also increased and currently sits at around $1,370.
It is interesting to note that the company's stock has consistently grown faster than the price of Bitcoin. For example, the stock has increased 216% this year, while Bitcoin has recorded a 91% increase in price. While still impressive, this pales in comparison to MicroStrategy's share price growth.
According to the company, the shares will be split between class A and class B and the date of the split will be August 1, 2024. As a result of this dividend, each shareholder of the company will receive an additional nine. shares for each share.
Holders of Class A shares will receive additional Class A shares, and holders of Class B shares will receive additional Class B shares. Knowing the price per share, the amazing nature of this stock's dividend becomes immediately clearer.
The main purpose of a stock split is to increase the number of shares in the company, because the existing shares are divided into many “new” shares. The company's market capitalization remains unchanged, but the price of each share decreases, allowing the company's shares to become more affordable without damaging the company's fundamental value.
The company has clarified that this stock split will not affect or change the voting rights of the company's shareholders. Instead, the move improves access to the company's stock by lowering the trading price per share. This can attract more investors and employees, which can convince them to buy the company's stock.
The public distribution of shares, which is expected to take place after the close of business on August 7, 2024, is set for that date.
