MicroStrategy (MSTR), one of the largest institutional holders of bitcoin (BTC), announced on Thursday its plan for a 10-for-1 stock split, joining a trend among companies to make shares more accessible to investors.
The stock split will apply to both Class A and Class B shares for shareholders of record as of August 1. Investors will receive nine additional shares for every share they hold after markets close on August 7. Trading on a split-adjusted basis will commence on August 8.
While the split will not alter the overall value of investors’ holdings, it is expected to lower the price per share, potentially boosting demand and making the stock more attractive to a broader range of investors. MicroStrategy shares have seen significant growth, more than doubling this year to exceed $1,000 each, largely fueled by the U.S. Securities and Exchange Commission’s approval of spot bitcoin ETFs in January, which drove bitcoin prices higher.
However, the recent enthusiasm for bitcoin, which peaked above $73,000 in March, has cooled, with the cryptocurrency currently trading in a tight range below $60,000.
MicroStrategy’s announcement follows similar moves by tech giants Nvidia (NVDA) and Broadcom (AVGO), both of which have also recently revealed plans for stock splits. Nvidia executed its 10-for-1 split last month, while Broadcom is set to follow suit after markets close on Friday.
Following the announcement, MicroStrategy’s shares rose over 4%, trading at approximately $1,362.50 around 11:30 a.m. ET on Thursday.
