Crypto

MicroStrategy to Split Stock 10:1 After Shares Triple Amid Bitcoin Surge

MicroStrategy announces 10-for-1 stock split after share price triples, holding 226,331 BTC valued over $13 billion.

By Bill Bullington

7/11, 09:46 EDT
Bitcoin / U.S. dollar
Bitcoin / US Dollar
MicroStrategy Incorporated
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Key Takeaway

  • MicroStrategy (MSTR) announces a 10-for-1 stock split effective Aug. 1, following a tripling of its share price over the past year.
  • The company's shares hit an all-time high of over $1,900 in March as Bitcoin surged past $70,000; currently trading at $1,300.
  • MicroStrategy holds 226,331 BTC worth over $13 billion and is seen as a leveraged play on Bitcoin's price.

MicroStrategy Announces 10-for-1 Stock Split

Nasdaq-listed software firm MicroStrategy (MSTR), the largest corporate holder of Bitcoin (BTC), has announced a 10-for-1 stock split. The split will be effected on August 1, with shares distributed after the market close on August 7. Holders of class A and class B common shares will receive nine additional shares for each share they own. The company stated that the split aims to make its shares "more accessible to investors and employees."

Stock Performance and Bitcoin Correlation

MicroStrategy's share price has more than tripled over the past year, reaching an all-time high of over $1,900 in March as Bitcoin surged past $70,000. The shares rose 6.8% to $1,300 following the announcement. The company, led by executive chairman and prominent Bitcoin advocate Michael Saylor, is often seen as a leveraged play on Bitcoin's price. MicroStrategy regularly issues corporate debt to acquire more Bitcoin for its treasury. As of its latest purchase last month, the company holds 226,331 BTC, valued at over $13 billion.

Market Context and Comparisons

Stock splits are common among public companies whose shares have significantly appreciated. While the split does not alter the company's valuation, it can make the stock psychologically more accessible to smaller, retail investors by reducing the share price. This is particularly relevant even as many retail trading platforms now offer fractional shares. For instance, chipmaker Nvidia (NVDA) recently conducted a 10:1 stock split after its share price tripled in a year, driven by the artificial intelligence (AI) equities rally.

Management Quotes

  • Michael Saylor, Executive Chairman of MicroStrategy:

    "The split will make the company's shares more accessible to investors and employees."