of course a fund doesn't care if it buys 1,000 stocks at 1600 or 10,000 stocks at 160. The split only matters for smaller investors, who would want to invest "a fraction", i.e. less than the current share price. So, in other words, MSTR is going after small investors managing their own portfolios.
ETFs were effectively a stock split for bitcoin. People are scared by the $60k price tag of BTC but feel better buying $20-$50 shares of FBTC, BRRR etc.
The stock split will be effected by means of a stock dividend to the holders of record of MicroStrategy’s class A common stock and class B common stock as of the close of business on August 1, 2024, the record date for the dividend.
In each case, the shares are expected to be distributed after the close of trading on August 7, 2024. Trading is expected to commence on a split-adjusted basis at market open on August 8, 2024. The stock dividend will not have any impact on the voting and other rights of stockholders.
The playbook has been rewritten by Saylor. Streaming sats as a dividend would just be a very powerful new chapter. It would create a buying frenzy and orange pill tons of normies. Both beneficial to MSTR.
I have not seen a whisper of it anywhere. It's an idea that occurred to me when considering how MSTR could flip investors into bitcoiners. It would be a huge announcement if it were ever to become realized and probably pull a lot of funds from the ETFs in the process further accelerating Saylor's ambitions.
Despite its size, Berkshire had for many years not been included in broad stock market indices such as the S&P 500 due to the lack of liquidity in its shares; however, following a 50-to-1 split of Berkshire's Class B Shares in January 2010, and Berkshire's announcement that it would acquire the Burlington Northern Santa Fe Corporation, parent of BNSF Railway, Berkshire replaced BNSF in the S&P 500 on February 16, 2010.[17][18]
ahhh just diluting the shares when I had room mates who were tesla guys they were excited for the 4 to 1 split and it made me think?? why would u be happy with your stock being diluted now u need more people to pump ur bag in...their response was well I still have the same amount of money and more tesla stocks now...i was the only one looking at the dilution lol it was wild
Splitting is essentially issuing stock due to supply going up. I would say but great analogy my thing is bitcoin doesn't do that y u see price where it's at microstrategies will never reach that due to these splits same as tesla
Yes, after a split an individual share is worth less bitcoin per share from MSTR treasury equity, but this does not matter for the existing holders.
Everyone has exactly the same amount of Bitcoin before and after the split — there is no dilution, as everyone just gets a proportional slice of their existing position.
Nobody loses out in a split. It’s the same amount of underlying. It generally a good thing to keep stocks in a range $1-100 because it makes options contracts cheaper (contracts are sold as bundles of 100 shares underlying).
Unbought? There are no unbought shares. There are 17.74M MSTR stocks out there with an owner. Outstanding stock means stock that’s out there. Every order on an exchange is still stock owned by the person making the exchange.
All these holders have have 10 the shares and 1x the Bitcoin.
So if I buy 2 stocks out of the 100 it splits and I sell 4 back then how does that not add? Putting 4 into 98 ? I appreciate u explaining it so i can grasp
LOL unit bias is a hell of a drug, and saylor is cooking them for all its worth, good on you mate, this dude is stopping at nothing with his financial engineering play book
Required because our traditional financial system can't deal with fractions of a share.
of course a fund doesn't care if it buys 1,000 stocks at 1600 or 10,000 stocks at 160. The split only matters for smaller investors, who would want to invest "a fraction", i.e. less than the current share price. So, in other words, MSTR is going after small investors managing their own portfolios.
This got me thinking where MSTR fell on the spectrum of high stock price.
https://www.forbes.com/advisor/investing/most-expensive-stocks/
I would not of guess MSTR was in the top 10
ETFs were effectively a stock split for bitcoin. People are scared by the $60k price tag of BTC but feel better buying $20-$50 shares of FBTC, BRRR etc.
They are going to go crazy when they learn about sats
Haha yeah but I think most people have a hard time wrapping their head around the number value of sats. Seeing the sats/$ ticker daily on SN helps me.
I think it's definitely one influence that steers newbies to invest in shitcoins.
I thought most brokers nowadays had fractional shares?
https://www1.interactivebrokers.com/en/trading/orders/fractional-share-orders.php
It's virtual. You can't, for example, send fractional share OTC to somebody else.
cheaper options, increase options market volume around $MSTR
In regards to this stock split:In regards to this stock split:
Historical info on prior stock splits:Historical info on prior stock splits:
https://www.fool.com/investing/2024/02/10/stock-split-watch-is-microstrategy-next/
It is interesting that in a prior stock run up MSTR Split and then had to do reverse split:
Jan. 27, 2000 2-for-1 July 31, 2002 1-for-10
Motley Fool link mention Old Super Bowl Ad: https://www.youtube.com/watch?v=xCSuQ10jPB4
MSTR should announce a dividend, paid in sats over the lightning channel. Saylor should put his
moneysats where is his mouth is.Don't think that works in the playbook. Better to leverage for more BTC
The playbook has been rewritten by Saylor. Streaming sats as a dividend would just be a very powerful new chapter. It would create a buying frenzy and orange pill tons of normies. Both beneficial to MSTR.
IIRC Saylor has spoken about this before and he was against the idea. I wasn't able to find a clip of it though.
Followed you though. I haven't been able to find much discussion of this topic yet on SN / nostr, so I appreciate it.
I have not seen a whisper of it anywhere. It's an idea that occurred to me when considering how MSTR could flip investors into bitcoiners. It would be a huge announcement if it were ever to become realized and probably pull a lot of funds from the ETFs in the process further accelerating Saylor's ambitions.
Are you on nostr?
Would be cool but I don't think he wants to part with "His Precious" Sats
Onboarding new hodlers makes the sats he owns more precious faster.
Fallacy. Fiat trucks! Warren Buffett never split Berkshire!
He did make brk.b
https://en.wikipedia.org/wiki/Berkshire_Hathaway
brk.a only!
https://m.stacker.news/39240
*Fiat tricks!
ahhh just diluting the shares when I had room mates who were tesla guys they were excited for the 4 to 1 split and it made me think?? why would u be happy with your stock being diluted now u need more people to pump ur bag in...their response was well I still have the same amount of money and more tesla stocks now...i was the only one looking at the dilution lol it was wild
Splits don’t cause dilution. Issuing stock causes dilution.
If you have a pizza and cut it into 8 slices, then cut it into 16 slices, the pizza is not diluted.
very good analogy
I read on X that Saylor wants to make MSTR options cheaper
That would be reasonable guess — options can drive the price and the easier these are to buy for retail, the more likely they will gamble with them.
Splitting is essentially issuing stock due to supply going up. I would say but great analogy my thing is bitcoin doesn't do that y u see price where it's at microstrategies will never reach that due to these splits same as tesla
Yes, after a split an individual share is worth less bitcoin per share from MSTR treasury equity, but this does not matter for the existing holders.
Everyone has exactly the same amount of Bitcoin before and after the split — there is no dilution, as everyone just gets a proportional slice of their existing position.
Nobody loses out in a split. It’s the same amount of underlying. It generally a good thing to keep stocks in a range $1-100 because it makes options contracts cheaper (contracts are sold as bundles of 100 shares underlying).
So even the unbluvht shares don't get split just share holders??
Unbought? There are no unbought shares. There are 17.74M MSTR stocks out there with an owner. Outstanding stock means stock that’s out there. Every order on an exchange is still stock owned by the person making the exchange.
All these holders have have 10 the shares and 1x the Bitcoin.
Thanks for deciphering unbought
Stock dividend on August 1
Trading on split adjusted basis will commence on August 8
Stock splits are common once a share price gets over $1000
So if I buy 2 stocks out of the 100 it splits and I sell 4 back then how does that not add? Putting 4 into 98 ? I appreciate u explaining it so i can grasp
The market cap doesn’t change.
The value of your holdings doesn’t change after a split.
To paraphrase the pizza 🍕 analogy from above, stock split represents the number of slices not the size of the pie. 🥧 pie size does not change.
LOL unit bias is a hell of a drug, and saylor is cooking them for all its worth, good on you mate, this dude is stopping at nothing with his financial engineering play book
Trying to build a discussion place for MSTR over on Satellite. The youtube video here is a good introduction to the playbook if you're unfamilliar.
view on satellite.earthI still don't get why anyone would buy stock shares of a "Bitcoin company", instead of just holding their own Bitcoin...
the only reason I own MSTR in my retirement accounts is that the early cash out penalties are expensive
this was expected
This a great move 🧠🧠🧠
@saylor just reduced the cost to writing calls and puts by 10x
Watch how the options market volume around $MSTR goes up
It will increase liquidity & perhaps even dampen downside volatility
It creates new more affordable opportunities for those looking for leveraged exposure to #Bitcoin
That saylor guy understands the game