MicroAlgo’s 30-for-1 Reverse Split Sparks Volatility Ahead of July 2 Vote

MicroAlgo Inc. (MLGO), the developer of Central algorithm solutions for digital industries, has announced plans for a 30-for-1 reverse stock split ahead of its Extraordinary General Meeting (EGM) on July 2, 2025. The move is part of a larger restructuring effort that also includes changes to share par value and a major increase in authorized share capital. The stock fell nearly 15% in pre-market trading after the announcement on June 13.

Not MLGO’s First Reverse-Split Rodeo

The proposed reverse split will convert every 30 existing shares into one new share, significantly reducing the total share count. MicroAlgo says this aims to streamline its capital structure and support compliance with Nasdaq’s minimum bid price requirement. Following the split, the company plans to first increase, then sharply reduce, the par value of its shares to $0.0000001. It also plans to authorize the issuance of a substantially higher number of shares.

This is not the first such move from MicroAlgo. In late 2024 and early 2025, it conducted a 20-for-1 reverse split. These repeated adjustments suggest a company under pressure to remain listed and maintain capital flexibility.

Behind the scenes, WiMi Hologram Cloud owns about 68% of MicroAlgo’s shares and is under a 10-year lock-up agreement. That level of control limits outside influence and centralizes major decisions.

The Market Is Skeptical

MicroAlgo has liquidity and assets but continues to face investor concerns over dilution, negative earnings, and exposure to U.S.-China geopolitical tensions. The upcoming EGM will determine whether the proposed changes proceed, but the market’s reaction so far has been skeptical.

Moreover, MicroAlgo’s technical indicators are negative. The stock holds a “Strong Sell” sentiment, with downward trends across moving averages, MACD, and price momentum.

Last Word for Tipranks’ Readers

TipRanks readers tracking MLGO should watch the July 2 meeting closely. The changes may impact both the share price and future capital moves. Traders should expect volatility, while long-term investors may want to see clearer signs of operational improvement.