MSTR Price Skyrockets As MicroStrategy Announces 10:1 Stock Split

MicroStrategy MSTR stock Bitcoin Bernstein

MicroStrategy, a prominent business intelligence company and one of the largest corporate holders of Bitcoin, has announced a significant move in its stock structure. The company’s board of directors has approved a 10-for-1 stock split for both its class A and class B common stock, aiming to increase accessibility for investors and employees. This has resulted in a price increase of the MSTR stock.

The stock split will be implemented through a stock dividend, with the record date set for August 1, 2024. Shareholders of record as of this date will receive nine additional shares for each share they currently hold, effectively multiplying the number of outstanding shares by ten.

The distribution of these additional shares is scheduled to occur after the close of trading on August 7, 2024. The market is expected to begin trading MicroStrategy shares on a split-adjusted basis when it opens on August 8, 2024.

MicroStrategy emphasizes that this stock split will not affect the voting rights or any other rights of stockholders. The move is primarily designed to lower the per-share trading price, potentially making the stock more attractive to a broader range of investors.

This decision comes at a time when MicroStrategy’s stock has seen significant volatility, largely due to its substantial Bitcoin holdings and the cryptocurrency’s price fluctuations. The stock split may be seen as a strategic move to enhance liquidity and attract more retail investors to the company’s shares.

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