Nasdaq-Listed MicroStrategy Announces 10-for-1 Stock Split

Nasdaq-listed software firm MicroStrategy (MSTR), recognized as the largest corporate holder of bitcoin (BTC), has unveiled plans for a 10-for-1 stock split. The company made the announcement in a press release, stating that the stock split is scheduled to take effect on August 1, with shares being distributed after the market closes on August 7.

Holders of class A and class B common shares will receive nine additional shares for each share they currently own. This strategic move is aimed at making the company’s shares more accessible to a broader range of investors and employees.

MicroStrategy’s share price has experienced significant growth over the past year, more than tripling in value. In March, it reached an all-time high of over $1,900 as BTC surged past $70,000. Today, the shares rose by 6.8% to $1,300.

Under the leadership of executive chairman and prominent bitcoin advocate Michael Saylor, MicroStrategy is often seen as a company closely tied to the price movements of bitcoin. The firm regularly leverages corporate debt to finance the acquisition of additional bitcoin for its corporate treasury. Following its most recent purchase last month, MicroStrategy now holds 226,331 BTC valued at over $13 billion.

Stock splits are a common phenomenon among publicly traded companies whose share prices have experienced substantial appreciation. Although a stock split does not alter the company’s overall valuation, it can enhance the stock’s accessibility, particularly for smaller retail investors. This is achieved by reducing the share price, especially at a time when many retail-oriented trading platforms offer fractional shares.

Recently, chipmaker giant Nvidia (NVDA) also implemented a 10-for-1 stock split after its share price reached four digits, marking a threefold increase over the course of a year driven by the AI-focused equities surge.