Shares in MicroStrategy (MSTR) rose sharply ahead of the market open on Thursday after the company announced that its board of directors has approved a 10-for-1 stock split of its class A and class B common stock.
The company’s stock rose more than 6% in premarket trading.
The split is intended to make the stock, which was trading at $1,363 before the market opened, more accessible to investors and employees, according to the company.
“The stock split will be effected by means of a stock dividend to the holders of record of MicroStrategy’s class A common stock and class B common stock as of the close of business on August 1, 2024, the record date for the dividend,” it said.
Analysts have noted that MicroStrategy's strategy of purchasing bitcoin to protect its reserve assets has increased the stock's attractiveness, as its value often correlates with the digital asset.
MSTR shares have surged 107% in 2024, while bitcoin has gained approximately 40% over the same period.