Bitcoin buyer Microstrategy announces 10-for-1 stock split

As a seasoned crypto investor with a keen interest in MicroStrategy’s Bitcoin strategy, I view the recent 10-for-1 stock split as a positive development. This move will make MicroStrategy’s shares more accessible to a wider range of investors and employees, potentially increasing its market reach and overall appeal.

As a researcher, I’d put it this way: The MicroStrategy board made the decision to issue a 10-for-1 stock split for both classes A and B of their common shares.

The stock split will make it easier for investors and employees to acquire MSTR shares, increasing their accessibility following the announcement. Intraday trading saw a 7.5% rise in the software company’s (MSTR) share price after the announcement of its Bitcoin (BTC) investments.

In simpler terms, a 10-for-1 stock split implies that for each existing share held by an investor, they will now own ten shares. The value of each new share corresponds to one-tenth of the initial share’s worth.

MicroStrategy’s stock split will be distributed as a stock dividend. On August 1, 2024, shareholders will receive nine extra shares for every share they own, following the close of business. The distribution of these additional shares is projected to take place after trading hours on August 7, 2024. Regular trading based on the split-adjusted number of shares will commence on August 8, 2024.

This stock dividend will not affect the shareholders’ voting rights or other privileges.

Bitcoin purchases 

As a researcher studying MicroStrategy’s financial moves, I’ve noticed their decision to invest in Bitcoin as a protective measure against potential depreciation of their reserve assets has garnered significant approval from investors. This strategic move has enhanced MicroStrategy’s stock appeal and bolstered its credibility within the crypto community.

As a researcher studying corporate investments in cryptocurrencies, I’ve discovered that my case study company started purchasing Bitcoin back in 2020, during a downturn in its software business. Now, it holds the most substantial Bitcoin reserves among all corporations. This move towards digital assets has coincided with an impressive increase in the company’s stock price. In 2024 alone, the stock value soared by 107%, while Bitcoin experienced approximately a 40% growth over the same time frame.

On June 20, MicroStrategy bought 11,931 Bitcoins for a total of $786 million using funds obtained from converting their notes into cash, according to the company’s founder, Michael Saylor.

Currently, MSTR has experienced a gain of 7.3% and is valued at $1,401.06 per share. Back in March, the stock attained its highest point ever, reaching $1,999.90.

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2024-07-11 17:32