As a researcher with a background in finance and experience following the technology sector closely, I view MicroStrategy’s decision to implement a 10-for-1 stock split as an intriguing development that could potentially broaden the company’s investor base and enhance employee ownership. This strategic move comes after the company’s significant growth in the last six months, with its stock value increasing by over 100% since December 2023.
MicroStrategy Corporation, with the largest known Bitcoin holdings among corporations, announced a 10-for-1 stock split on Thursday, aiming to make its shares more affordable and reachable for potential investors and employees.
According to the announcement, Class A and Class B common stocks are part of a deliberate plan aimed at attracting a wider range of investors and allowing employee stock ownership.
On August 1, 2024, MicroStrategy will distribute a stock dividend to its Class A and Class B common shareholders whose names appear on the company’s books at the close of business on that day. This dividend distribution is intended to facilitate a stock split.
If you own Class A or Class B common stock in this crypto project, you’ll receive a dividend that brings an added bonus. Specifically, for every share you hold, you’ll be granted nine extra shares in the corresponding class. So, if you own 10 shares of Class A stock, you’ll receive an additional 90 shares (10 x 9). Similarly, if you hold 5 shares of Class B common stock, you will receive an extra 45 shares (5 x 9).
After the stock market has closed on August 7, 2024, additional shares will be distributed. Come August 8, 2024, when the market reopens, trading will commence on a split-adjusted basis. The stock dividend does not impact existing shareholders’ voting rights and other privileges.
As an analyst, I’d rephrase it as follows: The announcement caused MicroStrategy’s shares to surge approximately 7%, reaching a new peak of $1,400.20, which represents a $94.47 increase. However, despite this uptick, the stock remains about 34% shy of its historic high at $1,999.99, attained back in March 2024.
MicroStrategy, a U.S. business intelligence company, experienced a significant growth in its stock value during the past six months, with an impressive surge of 118.09%.
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2024-07-11 17:40