The board of directors of MicroStrategy has declared a 10-for-1 stock split of the company’s Class A and B common stock to enhance accessibility for investors and employees.
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.
The expected distribution of the shares will occur after the closing 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 split.
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. This method emphasizes the organization’s dedication to incorporating Bitcoin into its strategy. There was a statement that read:
“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 software analytics solutions.
MicroStrategy’s BTC Buying Frenzy
The company’s new development coincides with its announcement of intentions 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. Qualified investors would acquire the notes on June 14, according to MicroStrategy. Adding additional Bitcoin to its treasury constitutes a portion of the process.
Ultimately, the transaction generated nearly $800 million, with $786 million allocated to acquiring 11,931 BTC. Due to its most recent Bitcoin acquisition, MicroStrategy currently possesses 226,331 BTC, equal to approximately $13.2 billion.