Nasdaq-listed software firm MicroStrategy (MSTR), the largest corporate holder of bitcoin (BTC), revealed a 10-for-1 stock split on Thursday. As the company holds more than $13 billion worth of BTC in its treasury, this announcement has captured the attention of investors.
The stock split will take effect on August 1, with shares distributed after the market closes on August 7. According to a press release, holders of class A and class B common shares will receive nine additional shares for each share they own. MicroStrategy stated that this move aims to make its shares “more accessible to investors and employees.”
Significant Share Price Growth
MicroStrategy’s share price has seen a remarkable increase, more than tripling over the past year. It hit an all-time high of over $1,900 in March, coinciding with BTC’s surge past $70,000. Following the stock split announcement, the shares rose 6.8% to $1,300.
Under the leadership of executive chairman Michael Saylor, a well-known bitcoin advocate, MicroStrategy is frequently perceived as a leveraged play on bitcoin’s price. The company regularly issues corporate debt to fund further bitcoin purchases. As of the latest acquisition last month, MicroStrategy held 226,331 BTC, valued at over $13 billion.
Also Read: MicroStrategy Acquires Additional 11,931 Bitcoin for $786 Million
Making Shares More Accessible
Stock splits are a common strategy among public companies with significantly appreciated shares. Although a split does not alter the company’s valuation, it can make the stock more psychologically accessible to smaller, retail investors by lowering the share price. This change comes even as many retail trading platforms offer fractional shares, which allow investors to buy less than one full share.
Industry Comparison
MicroStrategy’s move mirrors recent actions by other major companies. For instance, Nvidia (NVDA), a leading chipmaker, conducted a 10:1 stock split last month after its shares soared to four-digit prices, tripling in value due to the artificial intelligence-driven equities rally.
MicroStrategy’s decision to implement a 10-for-1 stock split underscores its commitment to making shares more accessible and reflects its significant growth driven by bitcoin investments. As the largest corporate bitcoin holder, MicroStrategy continues to be a prominent figure in both the cryptocurrency and corporate worlds.
