Opinion: MicroStrategy's stock split will boost its stock price to continue rising
ChainCatcher news, according to CoinDesk, MicroStrategy is the largest corporate Bitcoin holder, with over $13 billion worth of Bitcoin in its treasury. MicroStrategy (MSTR) announced today a 10-for-1 stock split, which will take effect on August 1, and shares will be distributed after the market closes on August 7. This split will make the company's stock "more accessible to investors and employees."Before this announcement, MicroStrategy's stock price had more than doubled over the past year, reaching a record high of over $1,900 in March, while BTC rose above $70,000. Today, the stock rose 6.8% to $1,300. MicroStrategy is led by Executive Chairman and widely followed Bitcoin supporter Michael Saylor, who typically increases leverage on Bitcoin holdings. The company regularly issues bonds to raise funds to purchase more Bitcoin for its treasury. After its latest purchase last month, the company holds 226,331 Bitcoins, worth over $13 billion.Stock splits are common among publicly traded companies with significantly appreciated stock prices. While a split does not change the 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 trading platforms offer fractional shares. Recently, chip manufacturing giant Nvidia conducted a 10-for-1 stock split last month after its stock price reached four digits, driven by a surge in the AI sector, with its stock price doubling within a year.