MicroStrategy Announces Major 10-for-1 Stock Split After Bitcoin High

MicroStrategy, the largest Bitcoin holder, announced a 10-for-1 stock split on Thursday.

The company said it would split its shares into Class A and Class B common shares “to make MicroStrategy’s stock more accessible to investors and employees.” The move comes amid a pause in Bitcoin prices, which have been in a narrow range since around March, but many investors expect a rebound in the second half of the year.

The stock has risen about 6%, but is currently about 34% below its all-time high of $1,999.99, hit in March of this year.

MicroStrategy plans to pay a dividend to shareholders on August 1, paying shareholders an additional 9 shares for each share they hold. The distribution is expected to take place after the close of trading in August. 7. Trading of shares will begin on August 8th after the split.

MicroStrategy started out as an enterprise software provider, but launched an active bitcoin buying strategy in 2020 and has since traded primarily as an agent for the price of the leading cryptocurrency. The company announced in February this year that it would shift its corporate focus and brand to bitcoin development.

Bernstein recently said that MicroStrategy is “building the world’s largest bitcoin company” with room for upside of about 80%.

MicroStrategy shares have risen 106% this year versus bitcoin’s 38% gain, and 216% in the past 12 months versus bitcoin’s 91% gain.