Key Takeaways
- MicroStrategy has announced a 10-for-1 stock split to increase accessibility for investors and employees.
- The stock split will take effect on August 8, 2024, without affecting voting rights.
- MicroStrategy now holds 226,331 BTC, valued at about $13.2 billion.
Nasdaq-listed business intelligence firm MicroStrategy’s board of directors has announced a 10-for-1 stock split for its Class A and B common stock.
On July 11, MicroStrategy stated that the stock split aims to increase accessibility for its investors and employees. The split will be executed as a stock dividend, granting stockholders of Class A and B stocks nine additional shares per share owned. The shares are expected to be distributed after trading closes on August 7, 2024, with split-adjusted trading commencing on August 8, 2024. Despite the split, the voting rights of stockholders will not be affected.
Within the announcement, the firm also reiterated its position as a Bitcoin development company. MicroStrategy has been actively integrating Bitcoin into its strategy, accumulating BTC as its primary treasury reserve asset. The company stated:
As an operating business, we are able to use cash flows as well as proceeds from equity and debt financings to accumulate Bitcoin, which serves as our primary treasury reserve asset.
This new development follows the company’s recent plans to acquire more Bitcoin. On June 13, MicroStrategy unveiled its intentions to conduct a $500 million stock sale to purchase more BTC. The firm increased the volume of its stock sale to $700 million the next day, ultimately reaching almost $800 million, with $786 million used to purchase 11,931 BTC. With this purchase, MicroStrategy now holds 226,331 BTC, worth approximately $13.2 billion.
