As a seasoned crypto investor with a keen interest in Bitcoin and related stocks, I see MicroStrategy’s upcoming 10-for-1 stock split as an intriguing development that could make the stock more accessible to a broader audience of investors. However, I also understand that this move comes with potential risks and implications.
As a researcher studying the tech market, I came across an intriguing announcement from MicroStrategy, a Bitcoin development firm. Their executive chairman, Michael Saylor, revealed plans for a forthcoming 10-for-1 stock split. Consequently, the company’s Bitcoin shares experienced a 3% surge on Thursday.
Smaller investors will find it much more economical to invest minimally in MSTR following this action, as they were previously priced out during its early-year surge in tandem with Bitcoin.
Making MicroStrategy More Affordable
According to a press release issued on Thursday, this action pertains to the owners of MicroStrategy’s Class A and Class B common stock. Starting from August 1, 2024, each share they currently possess will be followed by an additional nine shares, effective after the trading market has closed on August 7.
As a crypto investor, I can explain that MicroStrategy announced a stock split through a press release on Thursday. This means that each share I hold will be divided into more shares, making it easier and more affordable for me, as well as their employees, to invest in the company. The actual split will take place as a stock dividend, with the record date being August 1, 2024. So, if I am a holder of record on that date, I will receive additional shares based on my current holdings.
When a company performs a stock split, it breaks down its current shareholding into smaller portions. This process is facilitated by distributing additional shares proportionately among existing shareholders.
The stock split won’t alter the percentage ownership of each investor in MicroStrategy as a whole. However, it significantly reduces the worth of an individual share. Consequently, the price of MicroStrategy shares is anticipated to drop dramatically, potentially reaching only a fraction of their current value, once the split becomes effective on August 8.
In May, Stokr revealed that they had represented the MSTR stock as CMSTR on Bitcoin’s Liquid sidechain, enabling investors to trade fractions of MSTR starting from 0.01 unit.
The MSTR Playbook
According to Google Finance, as of Wednesday, Mastercard’s (MSTR) stock was priced at $1,356. The market value of the company reached $24 billion. Since the beginning of the year, MSTR has experienced a remarkable increase of 97%, surpassing Bitcoin’s 30% growth during the same period.
Just like historical trends indicate, MicroStrategy’s value has closely followed that of Bitcoin this year with more pronounced price fluctuations. As the world’s largest Bitcoin holder, the company boasts a significant stake consisting of 226,331 Bitcoins valued at approximately $13.04 billion.
As a crypto investor, I’ve noticed MicroStrategy making some significant moves in the market by selling convertible notes worth nine figures to procure more Bitcoin throughout the year. This strategy has caught the attention of smaller publicly traded companies, who are now following suit. For instance, Semler Scientific (SMLR) and Metaplanet are among those replicating this method to acquire more Bitcoin using their capital markets.
Read More
- W PREDICTION. W cryptocurrency
- PENDLE PREDICTION. PENDLE cryptocurrency
- AAVE PREDICTION. AAVE cryptocurrency
- ZETA PREDICTION. ZETA cryptocurrency
- AEVO PREDICTION. AEVO cryptocurrency
- FutureNet Co-Founder Roman Ziemian Arrested in Montenegro Over $21M Theft
- JGN PREDICTION. JGN cryptocurrency
- EUR JPY PREDICTION
- DOGE PREDICTION. DOGE cryptocurrency
- QNT PREDICTION. QNT cryptocurrency
2024-07-11 23:36