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Michael Saylor’s MicroStrategy (MSTR) announces stock split as stock price triples in a year on Bitcoin (BTC) rally

Michael Saylor’s MicroStrategy (MSTR) announces stock split as stock price triples in a year on Bitcoin (BTC) rally
Michael Saylor’s MicroStrategy (MSTR) announces stock split as stock price triples in a year on Bitcoin (BTC) rally

Nasdaq-listed software company MicroStrategy (MSTR), the largest corporate holder of Bitcoin (BTC), announced a 1:10 stock split on Thursday.

The split will be completed on August 1 and the shares will be distributed after the market closes on August 7, the company said in a press release. Holders of Class A and Class B common stock will receive nine additional shares for each share they own.

The company said the split would make the company’s shares “more accessible to investors and employees.”

The announcement comes after MicroStrategy’s share price more than tripled over the past year, hitting an all-time high of over $1,900 in March as BTC surged above $70,000. Shares rose 6.8% to $1,300 today.

MicroStrategy, which is led by CEO and widely followed Bitcoin proponent Michael Saylor, is often seen as a leveraged play on the price of Bitcoin. The company regularly issues corporate bonds to raise money to buy more Bitcoin for its coffers. After its most recent purchase last month, the company owned 226,331 BTC, worth over $13 billion.

Stock splits are common among publicly traded companies whose shares have increased significantly in value. While the split does not change the company’s valuation, it could make the stock more psychologically attractive to smaller retail investors by lowering the share price, even at a time when many retail trading platforms are offering fractional shares. Most recently, chipmaker Nvidia (NVDA) experienced a 10-for-1 stock split last month after hitting a four-digit share price that had tripled in a year, driven by the surge in share prices attributed to artificial intelligence (AI).

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