Stock-Split Watch: Is Strategy Next?

From Nasdaq

March 26, 2025 6:17:00 am:

Strategy (NASDAQ: MSTR) has had a tumultuous journey since its IPO in 1998, hitting highs and lows. A $10,000 investment in its IPO would have briefly reached $521,667 and dropped to $750, but now would be worth about $500,000. A $10,000 investment at its all-time low in 2002 would be worth $6.67 million today.

Strategy’s business shifted from software to accumulating Bitcoin, now holding 499,226 Bitcoins worth $42.6 billion. It recently raised $711 million and plans to raise $42 billion more for Bitcoin purchases. Its stock performance is tied to Bitcoin’s price, with potential volatility ahead.

Stock splits in Strategy’s history include a 2-for-1 split in 2000, a 1-for-10 split in 2002, and a 10-for-1 split in 2024. Its stock price has more than doubled since the last split but remains below its peak. Stock splits may not impact stock value significantly in today’s market landscape.

Investors should focus on the sustainability of Strategy’s Bitcoin strategy rather than stock splits. The company is heavily investing in Bitcoin, diluting existing investors and increasing debt. While a bullish outlook on Bitcoin may make Strategy an attractive investment, caution is advised due to the risks involved.

The Motley Fool’s Stock Advisor team does not currently recommend Strategy as one of the top 10 stocks to buy. Instead, they highlight other stocks with potential for significant returns. Stock Advisor offers guidance on portfolio building and regular stock picks, outperforming the S&P 500 since 2002.

Read more at Nasdaq: Stock-Split Watch: Is Strategy Next?