What MicroStrategy’s 10-For-1 Stock Split Means

MicroStrategy's board of directors approved a 10-for-1 stock split of its class A and class B common stock.

Bitcoin bull andナスダックcomposite-listed company MicroStrategy announced a 10-for-1 stock split on Thursday.

The move comes after MSTR shares more than tripled in price over the last year.

What Happened: The stock split was approved by MicroStrategy’s board of directors for its class A and class B common stock, according to a press release.

The stock split will be executed as a stock dividend, which will give stockholders of class A and B stocks nine additional shares for each share currently held.

The distribution is expected to occur after the market closes on August 7. Split-adjusted trading is expected to begin at the market open on August 8.

MicroStrategy said the split will make the company’s surging stock “more accessible to investors and employees.”

“The stock split will not affect the voting rights of the company’s stockholders,” MicroStrategy said in the press release.

This move was largely expected by industry pundits, given the meteoric growth of MicroStrategy shares since announcing its bold Bitcoin strategy in late 2020.

The company’s stock closed at $1,398.07 on Thursday, up 7.04% on the day.

Bitcoin Development Company: In the Thursday announcement, MicroStrategy also indicated that it views itself as a Bitcoin development company.

The Michael Saylor-founded software firm said it’s dedicated to advancing the Bitcoin network through its activities within the financial markets.

“MicroStrategy is a Bitcoin development company. We are dedicated to advancing the Bitcoin network through our activities in the financial markets,” the company said in the press release.

“We have adopted Bitcoin as our primary treasury reserve asset and are committed to accumulating and holding Bitcoin long term.”

MicroStrategy noted that it had accumulated Bitcoin as its primary treasury reserve asset. Notably, the company regularly issues corporate debt to raise funds to purchase more BTC for its treasury.

After its latest acquisition last month, the company now holds 226,331 BTC, valued at roughly $13.1 billion at the current market price of about $57,676. MicroStrategy spent a total of $8.33 billion to acquire the total BTC stash, indicating that it’s sitting on over $5 billion in unrealized profits.

Earlier in May, MicroStrategy announced plans to launch a Bitcoin-based decentralized identity protocol.

With MicroStrategy’s unrelenting Bitcoin push, the company has motivated others like Japan’s Metaplanet to rip a page out of its playbook.