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American business intelligence and software firm MicroStrategy Inc. has announced its 10-for-1 stock split. This move is unprecedented and is already fueling a rapid surge in the price of MSTR.

What MicroStrategy stock split means

As a publicly traded company, stocks are often split for various reasons but with the underlying gain of boosting accessibility and liquidation for users. 

As MicroStrategy noted, this stock split is projected to take effect from Aug. 1, 2024, with the underlying purpose of making it more available to investors and employees. With the stock split, each holder of MSTR Class A shares will receive nine additional shares in the same class. The same allocation plan holds for those with Class B shares.

As a publicly traded firm whose shareholders have a major say, MicroStrategy said the stock split will have no impact on voting rights. This move is expected by members of the crypto ecosystem considering the rapid growth of MicroStrategy shares since it announced its Bitcoin strategy in 2020.

The stock has grown remarkable and, at the moment, it is pegged at $1,305.72, up by 6.12% in the premarket. Over the past six months, the MSTR share has soared by more than 143% as investors rallied around it for its strong Bitcoin correlation.

Unrelenting Bitcoin push

MicroStrategy has established itself as a major model in its Bitcoin acquisition bid. The latest move in this regard was funded by $700 million in Convertible Senior Notes, which it raised from investors with five-year maturity.

As reported by U.Today at the time, these funds were used to buy an additional 11,931 Bitcoins for a whopping $786 million. This purchase brought the total Bitcoin in the company’s portfolio to 226,331 BTC, making it the largest publicly traded holder of the coin.

With Michael Saylor's bullish stance toward the coin, the firm is not relenting in its pursuit and has even inspired others like Metaplanet Inc. to follow in its footsteps.