By Emily Dattilo
MicroStrategy announced that its board of directors has declared a 10-for-1 stock split to make shares more accessible to investors and employees.
Each share will be paid a dividend of nine additional shares on Aug. 1, the company said in a press release. The new shares will start trading on Aug. 8.
MicroStrategy is the largest corporate holder of Bitcoin, and has been on quite a rally, with shares soaring 107% this year.
BTIG analysts offered three factors that could explain why. First, the price of Bitcoin has risen 50%. Second, accretive capital raises have boosted the number of Bitcoin per share for equity holders, and third, the implied premium of the company's Bitcoin holdings has increased from the previous year.
The stock was rising 6.5% to $1,390 when the market opened Thursday. The S&P 500 was little changed.
Write to Emily Dattilo at emily.dattilo@dowjones.com
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July 11, 2024 09:34 ET (13:34 GMT)
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