MicroStrategy, known for being the largest corporate holder of Bitcoin among publicly traded companies, has announced it will carry out a 10-for-1 stock split, aimed at making its shares more affordable and accessible to a broader range of investors and its employees. This decision comes after the company's shares soared approximately 1,000% following its initial purchases of Bitcoin in 2020. The announcement was confirmed in a Bloomberg article and a press release issued by MicroStrategy.

The company's foray into Bitcoin began under the direction of Michael Saylor, MicroStrategy's chairman and co-founder, who saw it as a hedge against inflation and a preferable alternative to holding cash reserves. To date, MicroStrategy has accumulated 226,331 Bitcoin, valued at roughly $13.3 billion.

The average purchase price of Bitcoin by MicroStrategy is about $37,000 per unit, as noted in a company filing. The Bloomberg article also mentioned that Bitcoin's price saw an increase of about 1.9% to $58,468 on Thursday, the day prior to the announcement.

According to MicroStrategy's press release, the stock split will be executed through a stock dividend to shareholders recorded on August 1, 2024. Shareholders will receive nine additional shares for each share of MicroStrategy's class A and class B common stock held. The new shares are slated for distribution after the market closes on August 7, 2024, with trading expected to begin on a split-adjusted basis from the start of the market on August 8, 2024. Importantly, the stock dividend will not alter the voting and other rights of the stockholders.

The last time MicroStrategy implemented a stock split was in 2002. The current move is expected to potentially increase liquidity and marketability of the shares by reducing the market price per share, thereby making it more appealing to a wider investor base.

Bloomberg Article

MicroStrategy Press Release