MicroStrategy Plans 10-for-1 Stock Split

IconCryptoNewsTerminal Staff11 Jul, 2024

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MicroStrategy Plans 10-for-1 Stock Split

MicroStrategy Incorporated has declared a 10-for-1 stock split in the form of a stock dividend. The split is subject to shareholder approval at the company's annual meeting on May 22, 2023, and will become effective on July 12, 2023. This is the second stock split for MicroStrategy in the past five years. The company previously announced a 2-for-1 stock split in February 2018. A stock split is a corporate action in which a company divides its existing shares into a larger number of shares. This does not affect the total value of the company, as the number of shares outstanding increases while the price per share decreases proportionally. Stock splits are often done to make a company's shares more affordable to investors. MicroStrategy's decision to execute a stock split indicates that the company believes its stock is undervalued and has the potential to attract more investors. The stock split will make MicroStrategy's shares more accessible to a broader range of investors, including retail investors who may have been unable to afford the higher pre-split share price.

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