MicroStrategy Incorporated, the biggest corporate bitcoin holder, declared a 10-for-1 stock split on Thursday to make its shares more accessible to investors and employees. The news has put in motion a lot of optimism among market participants as the stock price has increased by 7% crossing $1400.
As per the announcement, class A and class B common stock are involved in this calculated strategic decision to broaden the pool of potential investors and enable employee stock ownership.
The bitcoin-focused firm has planned to pay a stock dividend to the holders of MicroStrategy’s class A and class B common stock as of the close of business on August 1, 2024, the record date for the dividend, to effect the stock split.
As a result of the dividend, the holders of nine extra shares of class A common stock and nine additional shares of class B common stock, respectively, will be awarded to each shareholder of class A and class B common stock.
These extra shares will be allocated after the market closes on August 7, 2024, and trading on a split-adjusted basis will start on August 8, 2024, when the market opens. The stock dividend unaffected existing shareholders’ voting rights and other rights.
MicroStrategy shares increased around 7% after the news, hitting $1,400.20, up $94.47 (+7.24%). The stock is still roughly 34% below its all-time high of $1,999.99, reached in March 2024, even with this rise.
The stock value of MicroStrategy, a U.S.-based business intelligence firm, has increased by 118.09% year to date.
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