MicroStrategy Announces 10-for-1 Stock Split Four Months After Bitcoin Peak

• On Thursday, MicroStrategy, the company with the largest bitcoin holdings among corporations, announced a 10-for-one stock split.
• Although the shares increased by approximately 5% during premarket trading, they are currently around 34% below their all-time high of $1,999.99, which was attained in March.
• Since the price of bitcoin has been stuck in a tight range for four months, a move has been made.

On Thursday, the largest corporate shareholder of announced a 10-for-1 stock split.

To enhance accessibility to investors and employees, MicroStrategy announced that it will split its shares into class A and class B common stock. This decision was made during a period of low bitcoin prices, which have remained stagnant in a narrow range since March. However, many investors anticipate a price rebound in the second half of the year.

Although the shares increased by 5% in premarket trading, they are currently 34% below their all-time high of $1,999.99, which was reached in March of this year.

MicroStrategy will pay a dividend to its shareholders on Aug. 1, giving them an additional 9 shares for every 1 they hold. The distribution of these shares will occur after trading closes on Aug. 7, and the stock will begin trading on a post-split basis on Aug. 8.

In 2020, MicroStrategy shifted its focus to bitcoin development and has primarily traded as a proxy for the cryptocurrency's price since then.

MicroStrategy is currently being constructed by Bernstein as the world's largest bitcoin business, with an estimated 80% potential for growth.

This year, MicroStrategy stock has experienced a 106% increase, surpassing bitcoin's 38% growth. In the past 12 months, MicroStrategy stock has achieved a 216% rise, outpacing bitcoin's 91% advance.