MicroStrategy Announces 10-for-1 Stock Split, Effective August 1st
MicroStrategy, the largest corporate holder of Bitcoin, has announced a 10-for-1 stock split. The company, led by Michael Saylor, holds over $13 billion worth of BTC in its treasury and regularly uses corporate debt to increase its Bitcoin holdings. The stock split will take effect on August 1st, with the distribution of shares occurring after the market closes on August 7th.
This division of shares is aimed at making MicroStrategy stock more accessible to investors and employees. Shareholders of class A and class B ordinary shares will receive nine additional shares for each share they own.
Role of Bitcoin and Other Stock Splits
MicroStrategy is often seen as a leveraged play on the price of Bitcoin. The company regularly issues corporate debt to raise funds for purchasing more BTC for its treasury. With its recent purchase, MicroStrategy now holds 226,331 BTC, valued at over $13 billion.
Stock splits are common among publicly traded companies whose stocks have appreciated significantly. While the split does not change the company’s valuation, it can make the stock psychologically more accessible to small investors by reducing the share price, even though many trading platforms offer fractional shares. Nvidia, the semiconductor giant, recently underwent a 10-for-1 stock split after its stock price reached four digits, tripling in value in a year due to the rise of AI-powered stocks.
