MicroStrategy, the enterprise software company that has effectively become a leveraged bet on bitcoin, announced yesterday that it would split its stock.
Why it matters: That means more shares will be created, and lower prices.
Zoom in: The Tysons Corner, Virginia-based firm declared a 10-for-1 stock split for holders of its Class A and B shares.
Holders of MicroStrategy stock will receive nine additional shares after the market's close on Aug. 7.
Trading the next day would reflect the split.
Yes, but: It won't change the value of the company.
For example, if a stock was trading at $1,000 per share, a 10-for-1 stock split would make it trade for $100.
By the numbers: Shares traded at $1,358 this afternoon.
The big picture: MicroStrategy joins other high-profile tech companies like Nvidia and Broadcom that have recently made their shares more bite-size and more attainable to retail investors.
There are various studies on how stocks move post-split (up), but that effect might largely be psychological.
💭 Our thought bubble: Post-split, each share of MicroStrategy, based on its recent price, would be still higher than pretty much all of the bitcoin ETFs, which range from roughly $15 to $65.
