Stock-Split Watch: Is MicroStrategy Next?
From Nasdaq, Inc.:
Stock splits are a way to increase accessibility and excitement for investors, by cutting the same business ownership into a different number of slices. This move suggests confidence in a company’s future trajectory and can boost investor interest. Since MicroStrategy has shifted to a cryptocurrency investment, a stock split may be in the cards for this company, making headlines in the near future.
Although they don’t affect a stock’s underlying value, stock splits can inspire headlines and investor interest. MicroStrategy, which has a history of stock splitting, recently shifted its strategy to become a significant player in digital-asset investments. With a recent quadrupling of its stock price and a sustained gain in Bitcoin, a stock split may become reality for MicroStrategy, signaling confidence in its future trajectory.
MicroStrategy’s stock-split history is tied to the dot-com bubble but has since evolved into a company focused on cryptocurrency investments. Founder and chairman Michael Saylor has led the company through market corrections and shifts in strategy. As MicroStrategy sits at the intersection of business-intelligence software and digital-asset investments, a stock split could signal its confidence in this rapidly evolving space.
The recent gains in MicroStrategy’s stock price and its significant Bitcoin gains over the same period may be a prelude to another stock split. Saylor may be cautious about reminding investors of the company’s unflattering split history, but with the recent success of other companies who have chosen to split their shares, it seems likely that MicroStrategy will follow suit. Although a stock split doesn’t necessarily drive shareholder value, it may generate investor interest and headlines.
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