Software company MicroStrategy, which is the largest corporate holder of Bitcoin, announced a 10-for-1 stock split. The stock split, which will give shareholders nine class A and class B common shares on top of every share they hold, will be enacted on August 7.
Announcing the move, MicroStrategy said it aims to make its shares “more accessible to investors and employees.” The company’s stock surged by 7% at one point after the news was made public before settling at $1,358.56 per share.
Under the influence of its founder and former CEO Michael J. Saylor, MicroStrategy started investing in Bitcoin as a way to hedge itself from inflation and as an alternative to holding cash. It currently holds 226,331 Bitcoins as of June 24, 2024, purchased at an average price of $35,158.00 per coin.
MicroStrategy is splitting its stock at a time when Bitcoin prices have been trending down. The world’s most valuable cryptocurrency is currently trading around $57,500, having lost more than 20% of its value from all-time highs in March.
MicroStrategy stock reached its record price back in March, jumping to $1,999.99 per share as a result of the Bitcoin price surge. While it came back to Earth since then, it still remains 98.29% up year-to-date.