Efe Nail Saltık MicroStrategy, the Nasdaq-listed software company that is the largest institutional owner of Bitcoin (BTC), announced that it has decided to split its shares 10 to 1. The company said in a press release that the split will take place on August 1 and the shares will be distributed after market close on August 7. Holders of class A and class B common stock will receive nine additional shares for each share they own.
MicroStrategy states that this split will make the company’s shares “more accessible to investors and employees.” The announcement comes after MicroStrategy’s share price more than tripled last year. The price is up 6.8% today to $1,300.
MicroStrategy, led by chief executive officer and popular bitcoin advocate Michael Saylor, is generally viewed as a leveraged play on the Bitcoin price. The company regularly issues corporate debt to raise funds to purchase more Bitcoin for its treasury. After its acquisition last month, the company holds 226,331 BTC, worth over $13 billion.
Stock splits are quite common among public companies whose shares have gained significant value. Although a split doesn’t change the company’s valuation, it could lower the share price, making the stock more psychologically accessible to smaller, retail investors. Nvidia (NVDA) completed a 10:1 stock split last month after tripling in one year to a four-digit share price, fueled by a rally in artificial intelligence-focused (AI) stocks.
This move by MicroStrategy is seen as part of the company’s effort to make its shares accessible to a wider audience of investors. The stock split is expected to create a positive psychological impact among investors and attract the interest of retail investors.
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