MicroStrategy Announces 10-for-1 Stock Split Amid Bitcoin Price Stagnation

MicroStrategy, recognized as the largest corporate holder of bitcoin, revealed a significant 10-for-1 stock split on Thursday, aiming to enhance accessibility for investors and employees. Following the announcement, shares experienced a modest increase of approximately 6%. However, they remain about 34% below their all-time high of $1,999.99, which was achieved in March 2024. This stock split comes at a time when bitcoin prices have been relatively stagnant, remaining within a narrow range for the past four months. The company plans to implement the stock split by dividing shares into class A and class B common stock. Additionally, MicroStrategy has announced a dividend for shareholders, set to be paid on August 1, which will grant investors an extra nine shares for every one they currently hold. The new shares will be distributed after trading concludes on August 7, with trading on a post-split basis commencing on August 8. Despite the current lull in bitcoin prices, many investors are optimistic about a potential rebound in the latter half of the year. Earlier this year, MicroStrategy indicated a strategic shift towards bitcoin development, reinforcing its commitment to the cryptocurrency market. Bernstein has noted that MicroStrategy is on track to become "the world's largest bitcoin company," suggesting a promising outlook with an estimated 80% upside potential for the firm.