MicroStrategy to Split Stock 10:1 After Share Price Triples in a Year on Bitcoin Rally

Beginning August 1st, the company announced in a press release, the division will take place. Following the market closure on August 7th, shareholders of classes A and B will be given an extra nine shares for every share they currently hold.

The company announced that the split would make its shares more reachable for both investors and employees.

As a researcher, I’ve uncovered some intriguing information. MicroStrategy’s share price experienced remarkable growth over the last year, reaching an unprecedented peak of over $1,900 in March, coinciding with Bitcoin surpassing $70,000. Today, the shares climbed by 6.8%, settling at around $1,300.

As a researcher studying MicroStrategy’s business strategies, I can say that this company, headed by Michael Saylor who is well-known for his advocacy of bitcoin, is frequently perceived as an investment vehicle closely tied to the value of bitcoin. In order to acquire more of this cryptocurrency, MicroStrategy regularly issues corporate debt to secure additional funds. After completing its most recent transaction last month, the company now holds approximately 226,331 Bitcoins, which equates to over $13 billion based on current market prices.

Public companies with greatly increased share values frequently implement stock splits. Although this action doesn’t alter the company’s overall worth, it makes the stock more appealing psychologically to smaller investors by decreasing the share price. For instance, Nvidia (NVDA), a leading chipmaker, underwent a 10-for-1 split last month following its ascent to a four-digit share price and an impressive yearly growth of three times, driven by the surge in the artificial intelligence sector’s equity market.