MicroStrategy, a software firm renowned for its significant Bitcoin holdings, has announced a 10-for-1 stock split for both its Class A and Class B common stock. The decision, approved by the company’s board of directors, aims to enhance the stock’s accessibility for investors and employees alike.
The stock, which was trading at $1,363 premarket, experienced a 4% surge following the announcement. This move is seen as a positive step for MicroStrategy, as it could potentially attract a wider range of investors due to the lower price point per share.
Analysts have observed a strong correlation between MicroStrategy’s stock price and the performance of Bitcoin. This makes it a popular choice for investors seeking exposure to the cryptocurrency market. The company’s foray into Bitcoin began in 2020, as its software business encountered revenue decline. MicroStrategy has since emerged as the largest corporate holder of Bitcoin.
The stock split could further enhance MicroStrategy’s appeal to investors, especially those drawn to its Bitcoin holdings. The company’s shares have witnessed a remarkable 107% surge in 2024, mirroring Bitcoin’s own rise of approximately 40% during the same period. This alignment with Bitcoin’s performance makes MicroStrategy an attractive option for investors seeking exposure to the volatile yet potentially rewarding digital asset landscape.