MicroStrategy (MSTR) said on Thursday its board of directors has decided in favor of a 10-for-1 stock split of its class A and class B common stock, sending shares of the software company that invests in bitcoin (BTC-USD) up 6% before the bell.
The split is aimed at making the stock, which was last trading at $1,363 premarket, more accessible to its investors and employees, the company said.
Analysts have said MicroStrategy’s purchase of bitcoin to protect the value of its reserve assets has helped strengthen the appeal of the firm’s stock, which tends to move in tandem with the digital asset.
MicroStrategy began buying and holding bitcoin in 2020 as revenue from its software business eased, and it is now the largest corporate holder of the cryptocurrency.
The company’s shares have surged 107% so far in 2024, while bitcoin has risen roughly 40% over the same period.
(Reporting by Manya Saini in Bengaluru; Editing by Shinjini Ganguli)
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