*.*
News7News 7
HomeBusinessMicroStrategy’s Board of Directors Approve Dramatic 10:1 Stock Split

MicroStrategy’s Board of Directors Approve Dramatic 10:1 Stock Split

by News7

MicroStrategy has confirmed that it is effecting a 10-for-1 split, which will give current shareholders nine extra shares for each share they currently hold.
It will also make the company’s shares more affordable and accessible.

The board of directors of MicroStrategy, one of the biggest business intelligence firms in the world, announced a 10-for-1 split of their stock today. This noteworthy announcement came after the company purchased over 11,000 BTC for about $786 million last month, causing its total holdings to hit record highs. Its share price also skyrocketed and is currently sitting at about $1,370.

It is interesting to note that the company’s stock has steadily risen faster than the price of Bitcoin itself. For example, its stock has gone up about 216% this year, while Bitcoin has recorded a 91% increase in price. While still impressive, this pales compared to MicroStrategy’s share price growth.

According to the company, the shares will be split between class A and class B common shareholders, and the date set for the split is August 1, 2024. The effect of this split is that every holder of the company’s stock will receive an extra nine shares for each share they hold.

Holders of class A shares will receive extra class A shares, and holders of class B shares will receive extra class B shares. Knowing the price of a single share, the dramatic nature of this stock split immediately becomes more evident.

The essence of a stock split is to increase the number of shares in the company, as existing shares are divided into several “new” shares. The company’s market capitalisation will remain unchanged, but each share’s price will be slashed, allowing the company’s shares to become more affordable without compromising the company’s underlying value.

The company clarified that this stock split will not affect or change the current voting rights of the company’s stockholders. Instead, the move will improve the accessibility of the company’s stock by lowering the trading price per share. This may also attract more investors and employees, convincing them to buy the company’s stock.

The official distribution of the shares, expected to happen after trading closes on August 7, 2024, is pegged for that day.

Share this articleCategories

Source : CoinJournal

You may also like

12345678..........................%%%...*...........................................$$$$$$$$$$$$$$$$$$$$--------------------.....