MicroStrategy Announces 10:1 Stock Split

Nasdaq-listed software firm MicroStrategy (MSTR), the largest institutional holder of Bitcoin (BTC), has announced a 10-to-1 stock split.

The company said in a press release that the split will occur on Aug. 1, with shares distributed after the market close on Aug. 7. Holders of Class A and Class B common stock will receive nine additional shares for each share they own.

The software firm believes the split will make the company’s shares “more accessible to investors and employees.”

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The announcement comes after MicroStrategy’s share price has more than tripled in the past year, rising 6.8% to $1,300 today.

Led by CEO and popular bitcoin advocate Michael Saylor, MicroStrategy is often seen as a leveraged play on the price of bitcoin. The company regularly issues corporate debt to raise funds to buy more bitcoin for its treasury. After its purchase last month, the company holds 226,331 BTC worth over $13 billion.

Stock splits are common among public companies whose stocks have gained significant value. While a split doesn’t change a company’s valuation, it can make the stock more psychologically accessible to smaller, retail investors by lowering its share price, even at a time when many retail-oriented trading platforms are offering fractional shares. Nvidia (NVDA) split 10:1 last month after its stock price tripled in a year to a four-digit value, fueled by a rally in artificial intelligence (AI)-focused stocks.