Bitcoin
Bitcoin Holder MicroStrategy Joins Stock Split Wave
MicroStrategy, one of the world’s largest holders of bitcoin, said Thursday it is planning a 10-for-1 stock split.
The shares will be split between MicroStrategy’s Class A and Class B shares for holders of record as of Aug. 1, with investors set to receive nine additional shares after markets close on Aug. 7 for each share they previously owned.
By reducing MicroStrategy’s share price, the move could help make the stock more affordable to investors and stimulate demand.
MicroStrategy’s split follows a string of recent stock split announcements by other companies, including AI chip giants Nvidia and Broadcom.
MicroStrategy (MSTR), one of the world’s largest holders of bitcoin (BTC), said Thursday it is planning a 10-for-1 share stock splitbecoming the latest company to announce a split.
The shares will be split into MicroStrategy’s Class A and Class B shares for holders of record on Aug. 1, with investors set to receive nine additional shares after the close of markets on Aug. 7 for each share they previously owned. MicroStrategy’s first split-adjusted trading day will be Aug. 8.
The split could make MicroStrategy shares more affordable and increase demand
While the split will not change the overall value of investors’ holdings in MicroStrategy, by lowering the price of each MicroStrategy share, the split may help make the stock more affordable to investors and stimulate demand.
The company’s stock has more than doubled in value this year, to over $1,000 per share, following the U.S. Securities and Exchange Commission bitcoin ETF approval in sight in January boosted token prices.
However, some of the excitement around bitcoin, which rose above $73,000 in Marchhas recently fallen. The token is currently trading in a tight range below $60,000.
MicroStrategy’s move comes after Nvidia and Broadcom announce stock splits
MicroStrategy’s split follows a string of recent stock split announcements by other companies, including AI chip stars Nvidia (NVDA) and Broadcom (AVGO).
The darling of artificial intelligence Nvidia implemented last month AI chipmaker Broadcom is set for a 10-for-1 stock split after markets close on Friday.
MicroStrategy shares rose more than 4% to $1,362.50 as of 11:30 a.m. ET Thursday following the company’s stock split announcement.
Read the original article at Investopedia.