MicroStrategy Announces 10-for-1 Stock Split to Increase Accessibility
Nasdaq-listed business intelligence firm, MicroStrategy, has announced a 10-for-1 stock split for its class A and B common stock. According to a statement released on July 11, this move is designed to make shares more accessible to both investors and employees. The stock split will be implemented as a stock dividend, giving stockholders of class A and B shares nine additional shares for each share they currently own.
The distribution of these additional shares is set for after trading closes on August 7, 2024, with trading on the split-adjusted stock beginning on August 8, 2024. Importantly, the stock split will not affect the voting rights of the stockholders.
A Commitment to Bitcoin Development
In conjunction with this announcement, MicroStrategy reaffirmed its identity as a Bitcoin development company. The firm is committed to advancing the Bitcoin network through its market activities and has established Bitcoin as its primary treasury reserve asset.
The company highlighted its strategy of using cash flows, along with funds from equity and debt financing, to accumulate Bitcoin. This approach is central to MicroStrategy’s operational and financial strategy. They stated:
“As an operating business, we are able to use cash flows as well as proceeds from equity and debt financings to accumulate Bitcoin, which serves as our primary treasury reserve asset.”
Beyond its Bitcoin initiatives, MicroStrategy is also exploring artificial intelligence (AI) software analytics solutions.
MicroStrategy’s Continued Bitcoin Acquisition
This stock split announcement follows MicroStrategy’s recent moves to further invest in Bitcoin. On June 13, the company disclosed plans for a $500 million stock sale to finance additional Bitcoin purchases. Shortly after, on June 14, MicroStrategy announced the sale of convertible senior notes due in 2032 to qualified investors, increasing the stock sale to $700 million.
The company ultimately raised nearly $800 million, with $786 million allocated to purchasing 11,931 BTC. With this latest acquisition, MicroStrategy’s total Bitcoin holdings have reached 226,331 BTC, valued at approximately $13.2 billion.
This series of strategic moves underscores MicroStrategy’s unwavering commitment to integrating Bitcoin into its core business operations and financial planning.
Leave a comment