MicroStrategy Plans to Boost Accessibility

MicroStrategy has announced a 10-for-1 stock split to improve the accessibility of its stock to employees and investors

The board of directors of MicroStrategy, a business intelligence firm listed on Nasdaq, has declared a 10-for-1 stock split of the company’s class A and B common stock.

MicroStrategy announced on July 11 that the stock division is intended to enhance the accessibility of its investors and employees. Class A and B stockholders will receive nine additional shares per share owned due to the stock split, which will be implemented as a stock dividend.

It is anticipated that the shares will be distributed following the conclusion of trading on August 7, 2024. In the interim, trading on the split-adjusted stock will commence on August 8, 2024.

The voting rights of stockholders will remain unaffected by the division.

Bitcoin Development Company

The publicly traded company also stated in the announcement that it regards itself as a Bitcoin development company. The organization declared its commitment to advancing the Bitcoin network through its operations in the financial markets.

The organization emphasized that it had amassed BTC as its principal treasury reserve asset. The approach emphasizes the company’s dedication to incorporating Bitcoin into its strategy. They composed the following:

“As an operating business, we are able to use cashflows as well as proceeds from equity and debt financings to accumulate Bitcoin, which serves as our primary treasury reserve asset.”

In addition to its Bitcoin initiatives, the organization has also pursued artificial intelligence (AI) software analytics solutions.

MicroStrategy’s Bitcoin Acquisition Frenzy

Last month, the organization disclosed its intention to acquire additional Bitcoin. MicroStrategy disclosed its intention to execute a $500 million stock sale to acquire additional Bitcoin on June 13. Additionally, the organization declared its intention to issue convertible senior notes due in 2032.

The company announced the day following the announcement that it had increased the volume of its stock transaction to $700 million. MicroStrategy announced on June 14 that the notes would be sold to qualified investors. A portion of the process is dedicated to adding Bitcoin to its treasury.

Ultimately, the transaction generated nearly $800 million, with $786 million allocated to acquiring 11,931 BTC. After its most recent Bitcoin acquisition, MicroStrategy currently possesses 226,331 BTC, estimated to be worth $13.2 billion.