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MicroStrategy (NASDAQ:MSTR) has announced a 10-for-1 stock split, signaling a potential shift in its market strategy and accessibility to investors.
What Happened: In a press release, the Virginia-based company announced that the stock split will take effect on Aug. 1, with trading on a split-adjusted basis expected to commence on Aug. 8.
The move aims to make MicroStrategy’s shares more accessible to both investors and employees and could broaden its shareholder base.
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“As a result of the dividend, each holder of a share of MicroStrategy’s class A common stock will receive nine (9) additional shares of class A common stock,” the company stated, with the same applying to class B common stock holders.
The announcement has already made waves in the market, with MicroStrategy’s share price jumping 6.4% in pre-market trading to $1,389. Despite a 17% dip over the past month, the stock has seen an 89% gain year-to-date.
Why It Matters: This stock split comes on the heels of MicroStrategy’s recent Bitcoin acquisition. Last month, the company purchased an additional 11,931 BTC for approximately $786 million, bringing its total holdings to 226,331 BTC, worth roughly $13.4 billion.
Michael Saylor, MicroStrategy’s founder and executive chairman, noted that the company’s Bitcoin holdings were acquired at an average price of $36,798 per bitcoin, inclusive of fees and expenses.
While the stock split doesn’t change the fundamental value of the company, it could potentially attract more retail investors due to the psychological effect of a lower share price.
As MicroStrategy continues to intertwine its future with Bitcoin (CRYPTO: BTC), this move may be seen as part of a broader strategy to align itself more closely with the cryptocurrency market’s retail-friendly ethos.
What’s Next: The influence of MicroStrategy expected to be thoroughly explored at Benzinga’s upcoming Future of Digital Assets event on Nov. 19.
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This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Image: Shutterstock
