MSTR Price Skyrockets As MicroStrategy Announces 10:1 Stock Split

MicroStrategy, the business intelligence powerhouse known for its significant Bitcoin holdings, has made a bold move by announcing a 10-for-1 stock split. This decision, approved by the company’s board of directors, is aimed at making MicroStrategy’s shares more accessible to a broader range of investors and employees. The announcement has had an immediate impact, resulting in a 7% increase in the MSTR stock price.

This stock split represents a crucial moment for MicroStrategy, potentially reshaping its market dynamics and investor base. The decision comes at a time when the company’s stock has been under intense scrutiny due to its unique position as a major corporate Bitcoin holder.

MicroStrategy Announces 10-for-1 Stock Split

MicroStrategy’s board has approved a 10-for-1 stock split for both its class A and class B common stock. This split will be executed through a stock dividend, with August 1, 2024, set as the record date. Shareholders of record as of this date will receive nine additional shares for each share they currently own, effectively increasing the number of outstanding shares tenfold.

The distribution of these additional shares is scheduled for after the close of trading on August 7, 2024. The market is expected to begin trading MicroStrategy shares on a split-adjusted basis when it opens on August 8, 2024. The company has emphasized that this stock split will not affect the voting rights or any other rights of stockholders. Instead, it’s primarily designed to lower the per-share trading price, potentially making the stock more attractive to a wider range of investors.

This strategic move comes at a time when MicroStrategy’s stock has experienced significant volatility, largely due to its substantial Bitcoin holdings and the cryptocurrency’s price fluctuations. The stock split may be viewed as a calculated effort to enhance liquidity and attract more retail investors to the company’s shares.

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MSTR Stock Performance and Market Impact

The announcement of the stock split has had an immediate and significant impact on MicroStrategy’s stock price. In pre-market trading, the MSTR stock price surged by 7%, breaking past the $1,300 level and closing at $1,397.11. This continues a strong performance trend for the stock in 2024, with gains of over 114% since the beginning of the year.

Notably, MicroStrategy’s stock has outperformed Bitcoin itself since the start of 2023. While Bitcoin has seen impressive one-year gains of 145%, MSTR has far surpassed this with one-year gains of 216%. Over the past year, MSTR has traded within a wide range of $307.11 to $1,999.99.

The stock’s performance is even more remarkable when viewed in the context of MicroStrategy’s Bitcoin investment strategy. Since the company began purchasing Bitcoin in 2020, MSTR shares have surged by approximately 1,000%. This dramatic increase underscores the significant impact that MicroStrategy’s Bitcoin holdings have had on its stock price and market perception.

However, it’s also worth noting that Coinbase, along with MicroStrategy, and BTC miners recently faced the heat of U.S. job data.

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