Key Takeaways
- MicroStrategy announces a 10-for-1 stock split effective Aug. 1 to make shares more accessible to investors and employees.
- The stock split will not affect voting and other rights of shareholders, with trading resuming on a split-adjusted basis on Aug. 8.
- MicroStrategy purchases an additional 11,931 bitcoin, bringing total holdings to 226,331 BTC, worth approximately $13.4 billion.
MicroStrategy's 10-for-1 Stock Split
MicroStrategy has announces a 10-for-1 stock split effective August 1 to make shares more accessible to investors and employees.
The stock split involves issuing nine additional shares for each share of class A and class B common stock held.
The shares will be distributed after the close of trading on August 7, with trading resuming on a split-adjusted basis on August 8.
The company states that the stock dividend will not impact the voting and other rights of stockholders.
Stock Split Rationale and Market Impact
A stock split increases the number of shares by dividing existing ones, reducing the share price but keeping market capitalization unchanged.
This move enhances liquidity, makes shares more affordable for retail investors, and can improve market perception.
MicroStrategy's share price is up 6.4% in pre-market trading at $1,389, despite being down 17% over the past month.
MicroStrategy's Bitcoin Strategy and Future Plans
MicroStrategy recently purchased an additional 11,931 bitcoin for approximately $786 million at an average price of $65,883 per bitcoin.
The company now holds 226,331 bitcoin, worth roughly $13.4 billion, with total holdings bought at an average price of $36,798 per bitcoin.
In May, MicroStrategy announced plans to launch a Bitcoin-based decentralized identity protocol, further aligning with its Bitcoin-centric strategy.
