TL; DR
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The biggest bulls in crypto – MicroStrategy (MSTR) – just announced they are splitting their shares in a 10-to-1 stock split.
ICYMI, MSTR had about $500 million in cash left in 2020 and the then CEO (Michael Saylor) decided to invest it all in BTC.
He then invested more money in BTC.
And more.
Until today, where MSTR’s balance sheet contains over 226,331 Bitcoin, which at today’s value is worth over $13 billion USD.
Now they’ve chosen to do a 10-to-1 stock split, which means…
Simply put, shareholders will receive nine additional shares for each share they own (each worth 1/10th of its value), which will be distributed after the close of trading on August 7.
According to MSTR’s press release, the goal is to “make MicroStrategy’s stock more accessible to investors and employees.”
The interesting part is what this could mean for crypto:
While MSTR’s stock split won’t directly impact BTC, it will do indicate that this model can work.
So far we’ve seen Metaplanet in Japan take the same approach, but that’s about it.
Whether it is a good or bad idea to have your entire treasury in BTC is a matter of opinion.
But we’re glad these kinds of companies exist.