ChainCatcher reported that according to CoinDesk, MicroStrategy is the largest corporate Bitcoin holder, with more than $13 billion worth of Bitcoin in its vault. MicroStrategy (MSTR) announced today a 10-to-1 stock split, which will take effect on August 1 and the shares will be distributed after the close of August 7. The split will make the company's stock "more accessible to investors and employees."
Prior to the announcement, MicroStrategy's stock price had more than tripled over the past year and hit an all-time record of more than $1,900 in March, while BTC rose to more than $70,000. Today the stock rose 6.8% to $1,300. MicroStrategy, led by Executive Chairman and widely followed Bitcoin supporter Michael Saylor, has typically added leverage to its holdings in Bitcoin. The company periodically issues bonds to raise funds to buy more Bitcoin for its treasury. After its latest purchase last month, the company holds 226,331 Bitcoins, worth more than $13 billion.
Stock splits are common among public companies that have seen a significant appreciation in share price. While a split does not change a company's valuation, it may make it psychologically easier for smaller retail investors to buy the stock by lowering the share price, even in cases where many retail-oriented trading platforms offer fractional shares. Most recently, chipmaker giant Nvidia conducted a 10-for-1 stock split last month after its share price reached four digits, with its shares tripling in a year, driven by gains in the artificial intelligence (AI) sector.
