MicroStrategy, the largest corporate holder of bitcoin, announced a 10-for-1 stock split on Thursday. This decision aims to make MicroStrategy’s stock more accessible to both investors and employees. The shares will be split into class A common stock and class B common stock according to a Bloomberg report.
The announcement comes amid a period of stagnation for bitcoin’s price, which has been relatively stable since March. However, many investors anticipate a rebound in the second half of the year. Following the news, MicroStrategy’s shares rose about 6%, although they remain approximately 34% below their all-time high of $1,999.99, achieved in March.
MicroStrategy plans to pay a dividend to shareholders on August 1, providing an additional nine shares for every one they hold, with distribution set for after trading closes on August 7. The stock will begin trading on a post-split basis on August 8.
Originally launched as an enterprise software provider, MicroStrategy shifted its focus in 2020 to an aggressive bitcoin-buying strategy. Since then, it has primarily traded as a proxy for the flagship cryptocurrency’s price. In February, the company announced a further shift in focus towards bitcoin development.
According to Bernstein, MicroStrategy is “building the world’s largest bitcoin company” and has about 80% upside potential.
