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Bitcoin Holder MicroStrategy Joins Stock Split Bandwagon
KEY POINTS
- MicroStrategy, one of the world’s largest bitcoin holders, said Thursday it was planning a 10-for-1 stock split.
- The shares will be split between MicroStrategy Class A and Class B shares for holders of record as of August 1; investors will receive nine additional shares after the close of business on August 7 for each share previously held.
- By lowering MicroStrategy’s share price, this move could help make the stock more accessible to investors and stimulate demand.
- MicroStrategy’s split comes after a series of recent stock split announcements by other companies, including artificial intelligence chip stars Nvidia and Broadcom.
Microstrategy (MSTR), one of the largest bitcoin holders in the world (BTC), said Thursday that he is planning a 10-for-1 stock splitbecoming the latest company to announce a split.
The shares will be split into MicroStrategy Class A and Class B shares for holders of record as of August 1, with investors receiving nine additional shares after the market closes on August 7 for each share previously held. MicroStrategy’s first split-adjusted trading day will be August 8.
The split could make MicroStrategy shares more accessible and increase demand
While the split will not change the overall value of investors’ MicroStrategy holdings, lowering the price of each MicroStrategy share could help make the stock more accessible to investors and stimulate demand.
The company’s shares have more than doubled in value this year, rising above $1,000 a share following a decision by the U.S. Securities and Exchange Commission Bitcoin Spot ETFs Approved in January sent the token’s prices skyrocketing.
However, some of the excitement around bitcoin, which rose above $73,000 in Marchhas dropped recently. The token is currently trading in a tight range below $60,000.
MicroStrategy’s move comes after Nvidia and Broadcom announced stock splits
MicroStrategy’s split comes after a series of recent stock split announcements by other companies, including AI chip star Nvidia (NVDA) and Broadcom (AVOID).
The darling of Nvidia artificial intelligence implemented last month a 10-for-1 split. AI chipmaker Broadcom is set for a 10-for-1 stock split after the markets close on Friday.
MicroStrategy shares rose more than 4% to $1,362.50 around 11:30 a.m. ET on Thursday, following the company’s stock split announcement.